States must join hands for a solution on fuel taxes, says union Finance minister

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With the sudden hike in fuel prices, the union finance minister, Nirmala Sitaraman has asked the states to come up together in a proposition to optimize the taxes on fuel as Nearly 60% of the retail price of petrol and 56% of diesel price is made up of central and state taxes.

The Minister of State for Commerce & Industry (Independent Charge), Smt. Nirmala Sitharaman addressing a press conference, in New Delhi on October 14, 2016.

Its in the hands of the states

The Union finance minister Nirmala Sitharaman had told on Friday that its up to the state and central governments to come up with a proper solution in order to bring down the taxes on fuels in order to bring down the price hike.

100 rupees mark

The government has come to a very serious position on dealing with the fuel hike as the price has reached upto 100 rupees per lire in certain areas of Rajasthan, Madhya Pradesh, etc., There has been heavy regrets from the public towards the government on the sudden petrol hike as almost 60 % of the price is the tax imposed by the respective states and the agencies which supply them. And this has been the suggestion from the central as well.

Non – commitment approach

The Union finance minister had earlier imposed a budget that actually increased the taxes on fuel all over the country as an effort to match the oil price hike happening internationally. And in this current issue of internal price hike, the minister is said to have a non – commitment approach over the matter so far.

Dharamsankat

The union minister also said that if this situation persists, then its going to hit bigtime in the small scale and other workers of the country and even called the situation, ‘Dharmasankar’ in her speech. “It is a question which I would like states and the Centre to talk about because it’s not just the Centre which has duties on petroleum products, it also has the states charging,” added Sitharaman.

What will be future issues if this price hike continues? Will there be a reduction in price hike?

Comment your thoughts below and join us in the discussion.


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