New Delhi: Opposition BJP on Monday alleged that though oil companies were making profits, the government had increased the prices of diesel, cooking gas and kerosene to keep in check its fiscal deficit which is “going awry due to high corruption and faulty economic policies”.
“The government has reasoned that these prices were increased as international crude prices were increased, due to which Indian oil companies were losing money and the loss due to subsidy was becoming unbearable.... But the tax collected last year by the petroleum sector was . 1,35,000 crore and the total subsidy is only . 40,430 crore,” senior BJP leader Murli Manohar Joshi said.
Joshi argued that even after the tax share of states — which roughly amounts to . 55,000 crore — is factored in, the government would still be saving . 40,000 crore and hence the contention that it is suffering a loss is “incorrect”.
The senior BJP leader, who is also chairperson of Parliament’s Public Accounts Committee (PAC), said decreasing Customs duty — announced by the UPA government along with the last hike — has nothing to do with crude oil prices as it is determined by the formula of 80% of import price and 20% of domestic price.
He said the government did not want its fiscal deficit — pegged at 4.6% — to go up and so was increasing petroleum prices to prevent any impact on total tax collection.
Source: TNN 28th June 2011
“The government has reasoned that these prices were increased as international crude prices were increased, due to which Indian oil companies were losing money and the loss due to subsidy was becoming unbearable.... But the tax collected last year by the petroleum sector was . 1,35,000 crore and the total subsidy is only . 40,430 crore,” senior BJP leader Murli Manohar Joshi said.
Joshi argued that even after the tax share of states — which roughly amounts to . 55,000 crore — is factored in, the government would still be saving . 40,000 crore and hence the contention that it is suffering a loss is “incorrect”.
The senior BJP leader, who is also chairperson of Parliament’s Public Accounts Committee (PAC), said decreasing Customs duty — announced by the UPA government along with the last hike — has nothing to do with crude oil prices as it is determined by the formula of 80% of import price and 20% of domestic price.
He said the government did not want its fiscal deficit — pegged at 4.6% — to go up and so was increasing petroleum prices to prevent any impact on total tax collection.
Source: TNN 28th June 2011
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