People's Democracy
(Weekly
Organ of the Communist Party of India (Marxist)
No. 17
April 24, 2005
(Weekly
Organ of the Communist Party of India (Marxist)
|
Vol.
XXIX
No. 17 April 24, 2005 |
Withdraw Excise Duty: CPI(M)
The CPI(M) wants government of India to withdraw the hike in excise duty of diesel and petrol in the union budget as it will lead to increase in retail prices.
The finance minister said that reduction in import duty of crude and reduction in excise duty of kerosene and LPG had made the hike in excise duty of diesel and petrol - "Revenue neutral" which is not true. There is incremental revenue of Rs 3000 crore per annum on excise duty hike in petrol and diesel. As a matter of fact, increase in excise duty at a time when international crude price is increasing, is double burden on consumer.
Price Stabilisation Fund
Cess of Rs 1800 per ton on crude oil produced by ONGC and Oil India fetches Rs 5,500 crore for the government. This money is not used for development in oil sector. CPI(M) agrees with the standing committee recommendation that this should be used as price stabilisation fund to take care of oil price fluctuations in global market.
Petrol
& Diesel Price
Pre-Budget
& Post-Budget Comparison (As on 5.3.2005)
|
Particulars |
Diesel
(Rs/Ltr) |
Petrol
(Rs/Ltr) |
|
A.
Pre-budget excise duty in existing price |
3.185 |
12.188 |
|
B.
Post-budget excise duty in existing price |
4.835 |
14.639 |
|
C.
Increase in Excise Duty (B – A) |
1.65 |
2.45 |
|
D.
Reduction in import duty of crude by 5% (Rs/Ltr) |
0.72 |
0.73 |
|
Net
increase (C – D) |
0.93 |
1.72 |
|
Corresponding
increase in Retail Price including Sales Tax (12% for diesel & 20% on
petrol) |
1.13 |
2.23 |
