GET Stock QuotesNews18 APP
News18 English
Powered by cricketnext logo
»
1-min read

States Have Capacity and Must Cut Duty on Petrol, Says NITI Aayog VC

The rising crude prices in the international market prompted state-owned oil companies to raise domestic prices for 11th day in a row. Petrol costs Rs 77.47 a litre in Delhi and diesel Rs 68.53 a litre.

PTI

Updated:May 24, 2018, 4:18 PM IST
facebookTwittergoogleskypewhatsapp
States Have Capacity and Must Cut Duty on Petrol, Says NITI Aayog VC
Representative image.
New Delhi: States have the capacity and must reduce the duty on petrol, while the Centre should create fiscal space to deal with the impact of spurt in oil prices, NITI Aayog vice chairman Rajiv Kumar said on Thursday.

The rising crude prices in the international market prompted state-owned oil companies to raise domestic prices for 11th day in a row. Petrol costs Rs 77.47 a litre in Delhi and diesel Rs 68.53 a litre.

"There is merit in reducing the duties but both by the states and the Centre. More so for the states as they tax the oil on ad valorem basis ... So states can take that cut much more and better than the Union government," Kumar said.

He further said that it is important for them (states) to agree 10-15 per cent duty cut and take home the same amount of tax revenue as budgeted. "Not doing that means being exceptionally greedy at the cost of not just the people but also the economy," Kumar added.

The states, he said, on an average tax petrol at 27 per cent. As regards the Centre, the NITI Aayog vice chairman said they have the fiscal space and need to create more to deal with the problem of rising oil prices.

"The Centre has fiscal space and it can create more fiscal space on the non-tax revenue side. Because last year we did very well. We exceeded the Budget target. May be this year also we can do that," Kumar asserted.

He further said the Centre could consider reducing the additional excise duty on petrol. It should not temper with infrastructure cess which is being directly used for developmental activities, Kumar added. He also opined that not only petrol but electricity should also be brought under the Goods and Services Tax (GST).

Petrol and diesel prices were raised for the 11th day in succession today as the state-owned oil firms gradually passed on to the consumer the increased cost of international oil that had accumulated since a 19-day freeze was imposed just before Karnataka elections.

The government raised excise duty nine times between November 2014 and January 2016 to shore up finances as global oil prices fell, but then cut the tax just once in October last year by Rs 2 a litre. The Centre levies Rs 19.48 as excise duty on a litre of petrol.

Also Watch

Read full article
Most Active
Company Price Change %Gain
Sun Pharma 583.55 +6.30 +1.09
Bajaj Finance 2,374.95 +38.90 +1.67
HDFC 1,891.00 -15.75 -0.83
PNB Housing Fin 1,205.05 +132.50 +12.35
ICICI Bank 292.25 -8.40 -2.79
Company Price Change %Gain
UPL 634.30 -6.80 -1.06
Titan Company 866.85 -9.85 -1.12
ICICI Bank 292.40 -8.45 -2.81
BASF 1,941.00 -11.45 -0.59
Bajaj Finance 2,375.95 +40.85 +1.75
Top Gainers
Company Price Change %Gain
Vedanta 237.50 +8.95 +3.92
UltraTechCement 3,719.30 +78.25 +2.15
Infosys 1,270.30 +22.45 +1.80
Bajaj Finance 2,374.95 +38.90 +1.67
Hindalco 224.95 +2.95 +1.33
Company Price Change %Gain
Vedanta 237.50 +8.85 +3.87
Infosys 1,269.25 +22.80 +1.83
Sun Pharma 583.05 +6.75 +1.17
IndusInd Bank 1,967.30 +12.90 +0.66
HUL 1,618.10 +10.55 +0.66
Top Losers
Company Price Change %Gain
Tata Motors 295.75 -12.25 -3.98
BPCL 411.60 -14.75 -3.46
ICICI Bank 292.25 -8.40 -2.79
IOC 165.50 -4.50 -2.65
HPCL 304.50 -6.65 -2.14
Company Price Change %Gain
Tata Motors 295.80 -12.35 -4.01
ICICI Bank 292.40 -8.45 -2.81
Coal India 259.90 -5.20 -1.96
Power Grid Corp 194.40 -3.45 -1.74
NTPC 154.25 -2.65 -1.69

Live TV