The production cost of petrol, just outside the production unit as on today is Rs.40/-. The central government tax on this is Rs.20/- including central Excise and road cess. So the cost is Rs.60/-. The commission to petrol bunks is Rs.4/-. The total cost is Rs.64/- Then the taxes by State Government is Rs.17.5. The share of state government in the taxes levied by the central government is about 40% and that is Rs.8/-. So total benefit to the state government is Rs.17.5 + Rs.8/-=Rs.25.5 whereas central government is getting Rs.20/- minus Rs.8/- = Rs.12/-.
From the above, we can understand who is getting more benefit from these sales and why the state governments which are getting large benefit can decrease the tax. Even many state governments are not ready to accept the proposal of bringing these items to GST as they may lose a lot of revenue.
In fact the Kerala govt had tried to influence the by election in Chengannur to their favour by indirectly announcing the reduction. They very cleverly said that they could not implement it due to the election code remaining. So that served them to score a double. It was a stick to beat the central government and also to send a signal for the voters in the by election.
The result showed- the LDF won the by poll with a record margin.
Yes, the BJP/NDA have to learn from the Kerala ruling coalition how to win popular votes. Unfortunately they remain adamant not to learn any lesson.
Then people may decide what to do in next elections.
'Idhuvum Kadandhu Pogum "
Even this challenging situation would ease
Even the best economists agree, and are on record as having said that the Government needs to reduce its expenditure. We have a big comedy piece, as he is affectionately called in Tamil Nadu. He goes by the name of Pon Radhakrishnan. This fellow is so stupid that he cannot even talk correct facts. He goes on blabbering every day.
Every week, he is at Chennai or in his native Kanyakumari. Who is to foot the bill? It is ordinary people like us. He gives interviews from the airports, as if he is a big authority on every topic. But the fact is that he is the chief destroyer of whatever little image the BJP has in Tamil Nadu.
The BJP should throw out such people and bring in some smart young people as ministers. At least they will understand how to reduce Government cost. The Government ought to do this. Immediately.