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  • Category: Miscellaneous

    Why can't Central govt. take a clue from Marxist lead Kerala govt. in reducing fuel cost

    After attaining power, the BJP led Central Govt. continuously increased diesel and petrol prices many times. At present it also introduced daily changes in the cost of these fuels. The cost of these prices at present reached an all-time high in India even though the international crude oil prices are very low when compared to UPA govt. period At present also the prices of these fuels are low in other countries when compared to the high prices of our country. The reason for this is that both the central and State govt. are imposing heavy taxes on these fuels. As the State govt. is losing a lot of exchequer due to GST system, Center is leaving this tax to States to compensate the loss. For the first time, the CPI(M) led Kerala govt. has reduced tax on these fuels to give some relief to their people. Why can't the Center and other State governments to follow this clue to help the common man of India?
  • #637905
    The Kerala government has done a good thing by reducing the rate of fuel by Rs.1/-. This should be a clue to the state governments but not to the central government, I think. I expect other States also act as per the Kerala State government. As far as I know, the benefit a state government is getting by selling the fuel is higher than the central government.
    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.

    drrao
    always confident

  • #637913
    It is sarcastic that we see the fuel priced sliced of Rs. 1/ltr but not evident of the developmental works throughout country along with different other project in pipeline. I don't know but reduction of Rs. 1/ltr, how this is going to impact on our lives. We already have discussed the cascading effects resulting into increase in the commodity prices but this already happening each & every year & even without much changes in the fuel prices.

  • #637914
    One more thing that various political parties including at the state level leadership have been showing a much concern towards increased fuel prices but they haven't notified us with the facilities that they are receiving being on VIP post. Why not possible to reduce the facilities being offered to them as they are enjoying on our taxes.

  • #637920
    Earlier government also had done this type of small reliefs. But they all will remain as just gimmicks unless the state and central governments reduce the real tax.
    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.

  • #637977
    What the central government want to learn from Kerala government ? The taxes levied by each state is high and the center has been telling the states to compromise their rates reasonably so that the benefit can be passed on to the customers. Now after that so much hue and cry has been made the Vijayan government has reduced petrol price to certain extent. That means they already earned good amount all these days and want to mock the central government with their price reducing act. But some good planning is going on and the petrol price hike would be put to end soon. That is what news making rounds.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #637979
    I think that the States should reduce the price of petrol and diesel. However, the Central Government should also do something in this respect, by reducing duties applicable to it.

    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.


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