In the last 12 months, the Modi government has increased the tax on petrol and diesel twice. Thus, even when the price of crude oil was at the lowest record level in the international market, the general public could not get great relief on the petrol-diesel front.
Decision may be made by mid-March
But the finance ministry is now considering a way to reduce tax in collaboration with various states, oil companies and the oil ministry. Sources say that the Center also has to see that reducing the tax does not affect its finances. A source said, ‘We are discussing how to keep prices stable. By mid-March, we will be able to take a decision on this.Also read: Kotak Mahindra Bank is now offering cheaper home loans than SBI, how much EMI will have to be paid?
On the condition of revealing the name, a source said that the government wants the price of oil to be stable before tax cuts. The Center once again does not want to make any major changes in the tax structure. Meanwhile, the price of crude oil is continuously increasing in the international market.
Some states have cut tax
Recently, Union Finance Minister Nirmala Sitharaman had said, ‘I cannot say till when the taxes on fuel will be reduced, but the Center and the states together will have to reduce the tax on fuel.’ However, amid rising prices, some states have also reduced tax on petrol-diesel at their level.
Expect from OPEC + meeting
A source also told that the decision on tax on fuel will be taken only after the meeting between OPEC and other oil producing countries. This meeting is scheduled to take place in this week. The source said, ‘It is expected that OPEC + will take a decision towards increasing oil output. We hope that after this decision, there will be stability in prices.
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India has appealed to OPEC Plus countries to increase oil production. Actually, due to rising fuel prices, inflation is also increasing in this third largest economy of Asia.
How much did governments earn from taxes on fuel?
Let us know that about 5.56 lakh crore rupees have come from petroleum sector in the bag of Central and State Government. These are the figures for the financial year ended on 31 March 2020. During the first 9 months of the current financial year i.e. April to December 2020, 4.21 lakh rupees have come from this sector to the treasury of the Center and the states. This amount of Rs 4.21 lakh crore is when the demand for fuel reached the minimum record level due to Kovid-19.