The coronavirus crisis has led to a surge in public spending, especially in the form of higher commodity prices and increased medical spending. The pandemic has already hit the ordinary man hard, who is under pressure from job losses and pay cuts. Added to the woes are the rise in fuel prices.
Meanwhile, reports by Finance Minister Nirmala Sitaraman planning to impose a Covid-19 cessation in the next 2021 budget worry the common man.
FPJ highlights some of the taxes / levies already collected as a result of the Covid-19 epidemic
Rising fuel prices:
Crude oil prices on the international market fell below zero in April last year for the first time, but gasoline and diesel prices in India were still hovering around Rs 70 per liter and Rs 62 Rs per liter.
Meanwhile, in May of last year, there was an unprecedented increase in excise duties on gasoline and diesel of Rs 10 and Rs 13 per liter.
Today in Delhi the price of gasoline is Rs 84.20 per liter, while diesel is priced at Rs 74.38 per liter. Whereas in Mumbai it is 90.83 rupees per liter and that of diesel is 81.07 rupees per liter.
According to experts, the fall in crude oil prices has not been reflected in the retail prices of gasoline and diesel. The drop in the consumption of various fuels during the lockdown period negatively impacted state government revenues. Therefore, to take advantage of the cheap raw material, the government also tries to collect more fuel taxes, which can be used to offset further losses.
Reports that the Center may add an excise tax on petroleum and diesel or on top of tariffs are cause for concern as this will lead to a further increase in fuel prices.
“The common man in the low and middle income group in Tier II and Tier III cities is working very hard to revive the economy. Any other tax imposed by the government that drives up the price of gasoline or diesel is going to put a hole in our pockets, ”said Vishal Sharma, a bank employee.
Rising toll tax:
In November last year, the government of Maharashtra increased the toll tax for heavy goods vehicles on the national road by 10%. This in turn has led to higher prices for essential and non-essential goods, which have already become more expensive since the start of the pandemic. Carriers called the rise unjustified, saying the Covid-19 pandemic has already hit their businesses hard.
LPG price increase:
The price of LPG gas cylinders continues to rise as the prices charged by oil companies for cooking gas were increased on January 1, 2021. In the national capital Delhi, the price of 19 kg LPG cylinders was increased. increased to Rs 1349 from Rs 1332 earlier in December of last year. The price of a 14.2 kg gas cylinder remains Rs 694.
According to reports, companies in the oil market raised cooking gas prices twice last December. In the largest increase in a month, oil companies had raised cooking gas prices to Rs 100 in December. The rise in the prices of LPG gas cylinders was affected by Rs 50 for the 14 kg cylinder on two occasions during the fortnight of December.
“The rise in LPG prices is making it difficult for us the poor, who are already being burned by job losses and wage cuts,” said Sanjana, a housewife in Indore.
Reports say that “the proposal for a tax has been discussed,” and preliminary discussions revolved around a small tax on taxpayers who fall into the high income bracket and some indirect taxes.
Meanwhile, industry experts also echoed an ordinary man’s point of view, saying, “We want the government to reduce excise duties on gasoline and diesel to bring down prices.” of fuel that have reached record levels. The moderation of the central excise tax will bring help to those facing the heat of the economic downturn and income disruption due to the COVID-19 pandemic. “
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Posted on: Monday January 11, 2021, 2:56 PM IST