“In either case, servicing the loan (interest) would be the responsibility of the Central government,” Mr. Chidambaram said. “In the last seven years, the Modi government made ₹15.6 lakh crore from these hikes in excise duty,” he said, terming them “the actual reason” behind the increase in fuel prices. He pointed out that the spending on the servicing of UPA-era oil bonds was merely 3.2% of the taxes collected on petroleum products. Countering Ms. Sitharaman’s claim that high fuel prices are a legacy of UPA era oil bonds, the party claimed that spending on servicing of oil bonds is merely 3.2% of the tax collection from petroleum products. The government’s liability in 2021-22 on account of the oil bonds is ₹20,000 crore, but at the current rate, the Centre is expected to collect ₹5 lakh crore from taxes on petroleum products in this year, Mr. Maken said.

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