National

States have capacity and must cut duty on petrol: NITI

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 today.

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 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 told PTI in an interview.

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.

Dear Readers,
As an independent media platform, we do not take advertisements from governments and corporate houses. It is you, our readers, who have supported us on our journey to do honest and unbiased journalism. Please contribute, so that we can continue to do the same in future.
Some error occurred

Related posts

National Politics

Sinking Joshimath: Admin Sounds Alert, Asks Residents To Move To Relief Centers

ANI
Joshimath

Joshimath has been declared a ‘sinking zone’ in the wake of continuing land subsidence, with several homes and roads developing cracks over the last few days

Dehradun (Uttarakhand): Joshimath has been declared a ‘sinking zone’ in the wake of continuing land subsidence, with several homes and roads developing cracks over the last few days, driving residents outdoors and triggering fear.

Taking stock of the prevailing situation in the popular pilgrimage site, Uttarakhand Chief Minister Pushkar Singh Dhami has given instructions for monitoring all ongoing development works in the area while ensuring immediate relief and rescue of residents affected by the Joshimath landslide and subsidence.
He has also directed all possible help to the affected locals and speeding up of all development work in the area.

Meanwhile, Chamoli District Magistrate (DM) Himanshu Khurana went door to door in the affected area to assess the extent of damage, while urging residents in houses that have developed cracks to move to relief centres.
According to the Chamoli District Disaster Management Authority, 603 buildings in Joshimath town have developed cracks.

A total of 68 families have been ‘temporarily’ displaced.
“Under the Disaster Management Act, 2005, Hotel Mount View and Malari Inn have been banned for operation and accommodation till further orders,” the Authority said in a statement.

Also, Read: Sukhu inducts 7 Cabinet members, says all promises to be fulfilled

Under the Joshimath city area, 229 rooms have been temporarily identified as habitable, with capacity estimated at 1271.
The administration has also ordered an urgent evacuation of locals from areas prone to excessive landslides and deemed unsafe, after assessing the risk to life and property, under sections 33 and 34 of the Disaster Management Act.

“The work of identifying places affected by landslides is in progress and the vulnerable families are being temporarily shifted to safer places,” an official said.
The ongoing construction under the NTPC’s Tapovan Vishnugad Hydroelectric Project has been stopped with immediate effect, till further orders.
Ho Hare Helang bypass construction work by the Border Roads Organisation (BRO) has also been suspended with immediate effect, till further orders.

“With immediate effect, a ban has been imposed on construction works being carried out under Joshimath Municipality, till further orders,” the Authority stated.
The district administration on Sunday distributed necessary assistance funds for essential household items to the affected families.
Funds have also been distributed to 46 affected families for essential household items at the rate of Rs 5,000 per family.

While the cause of the apparent subsidence in the holy town is unclear, an Emeritus scientist at the Indian National Science Academy (INSA), DM Banerjee, blamed the construction of roads and tunnels for a nearby hydroelectric project for the prevailing situation.

“Joshimath is a part of the lesser Himalayas, the rocks are from the Precambrian era and the territory is of seismic zone 4. Apart from this, people should not have made houses on this land, especially not big ones with 3-4 storeys,” Banerjee told ANI on Sunday.

(Except for the headline, this story has not been edited by HW News staff and is published from a syndicated feed.)

Related posts

News Hub