Conceding that consumers were justified in wishing for lower fuel prices, Ms. Sitharaman, however, didn’t signal any imminent relief from the Centre on the excise duties and cess it levies, stressing that fuel prices are “a very difficult issue” and “the Petroleum Ministry is seized of the matter”. “It need not always be the case, that the Centre should cut (taxes) and then States will follow… A taxpayer is only looking at the price and wants it to come down, (they) don’t care whether it is Central taxes or State taxes,” she said. Arguing that States gained more than the Centre from higher fuel prices as they charged ad-valorem taxes while the Centre’s taxes were fixed, Ms Sitharaman alluded to the TN Budget announcement to cut State taxes on fuel. So far, ₹70,195.72 crore has been paid as interest on outstanding bonds worth around ₹1.31 lakh crore,” she added. “Another ₹37,840 crore is payable as interest till 2025-26, taking the interest alone close to ₹1 lakh crore,” she asserted, adding this is also taxpayer money.

Source: The Hindu August 16, 2021 17:18 UTC