As a Middle Class, Income Tax paying person, I would never agree to Government Subsidy on Petrol or Diesel. Why? Because for every rupee that is subsidized by the Government, the government will sooner or later tax the citizens to make up for the loss in revenue.
- “Congress party (government) purchased oil bonds of Rs 1.44 lakh crore that we (NDA govt) inherited. Not only this, we also paid Rs 70,000 crore on interest part alone. In total, we (govt) discharged our responsibility by repaying over Rs 2 lakh crore.” – Union Petroleum & Natural Gas Minister Dharmendra Pradhan. Who was going to pay for this? The previous Congress Government? NO – we, the citizens of India, who had grown used to Subsidies had to pay for it.
- “A cut in oil taxes will add to the fiscal deficit. National fiscal deficit determines bond yield and with a higher fiscal deficit, the Rupee becomes shakier” – Government Official So if the Rupee falls further, will the Fuel Bill Reduce or Go Higher? If Fuel bill increases and imports get costlier, who will suffer? We, the citizens of India, who are paying for every item imported.
- One rupee per litre cut in taxes means Government earns less revenue of Rs.30,000 cr. Per annum. Where do you think the Government will bring money from? YES! The middle class tax payer definitely.
- If the Middle class is not targeted by Government, it means that the Government will have to cut expenditure somewhere. The money earned by the Central Government via taxes on Fuel (Petrol & diesel) is used for building INFRASTRUCTURE. A revenue cut means delay in completion of the Rs.8.5 trillion SagarMala project – that means delay in building of highways, Coastal Employment Zones & Coastal Employment units. Or it could mean a delay in completion of the BharatMala project ie. internal Highways and Roadways. This means that development of my Nation is delayed. I definitely do not want that!
- Guess how much the Central Government earns via taxes on Fuel? Rs.19.48 for Petrol and Rs.15.33 for Diesel. I’d rather pay about Rs.20 more for 10 km mileage of my car ie. Rs.2/km and be connected throughout Bharat with better highways and roads especially in areas like the North East and interiors of Jharkhand, Odisha and other places which were inaccessible earlier.
- Do read this article – https://www.business-standard.com/article/economy-policy/maharashtra-bandh-loss-of-over-rs-7-bn-as-protests-put-brakes-on-business-118010400402_1.html … A loss of Rs.7 billion in Maharashtra alone in the ‘bandh’ called out in January 2018. Why can’t these Opposition parties which call for such a ‘bandh’ and then destroy property, DONATE for the worthy cause of reducing Petrol and Diesel prices? Will everyone join my demand to the Government to recover the cost of having a ‘bandh’ and use it to offset Fuel prices? We usually have ‘bandh’ TWICE A YEAR. If the Government recovers such money from those who declare a Bandh, we should have Petrol at Rs.65 / litre all over Bharat. What say?