Nirmala Sitharaman scolds opposition for reducing excise duty, says move

Finance Minister Nirmala Sitharaman on Sunday slammed the opposition’s criticism of reducing excise duty by affecting the share of states in the central tax, saying petrol was reduced by Rs 8 per liter and diesel by Rs 6 per liter on road and infrastructure cess. , Collection which was not shared with the state.

First, former Union Finance Minister P Chidambaram and then other opposition leaders said the reduction in excise duty on Saturday evening would reduce the share of central tax states.

Chidambaram on Sunday retracted his statement, saying the issue of tax cuts had only been submitted to the central government.

On Twitter, Sitharaman said he was sharing some useful information on tariffs on petrol and diesel for the benefit of all.

“Basic Excise Duty (BED), Special Additional Excise Duty (SAED), Roads and Infrastructure Duty (RIC) and Agriculture and Infrastructure Development Cess (AIDC) together form the excise duty on petrol and diesel. Basic ED can be shared with states. SAED, RIC and AIDC are non-divisive, ”he said.

The excise duty on petrol has been reduced by Rs 8 per liter and on diesel by Rs 6 per liter. It was also in November 2021 when taxes on petrol were reduced by Rs 5 and on diesel by Rs 10, he said.

According to the Center-State Tax Sharing formula, 41 per cent of the taxes collected by the Center go to the States. However, this does not include collection from cess. Most taxes on petrol and diesel are made up of cess.

Before Saturday’s cut, the total central tax on petrol was Rs 27.90 per liter and the basic excise duty was only Rs 1.40 per liter. Similarly, out of the total central tax of Rs 21.80 per liter of diesel, the basic excise duty was only Rs 1.80.

A special additional excise duty of Rs 11 per liter was imposed on petrol and Rs 8 per liter on diesel. The Agricultural Infrastructure and Development Cess (AIDC) was fixed at Rs 2.50 per liter for petrol and Rs 4 per liter for diesel.

Petrol RIC in the form of Rs 13 per liter was indicated as additional excise duty and Rs 8 per liter on diesel. This has been reduced due to the reduction in excise duty on Saturday. BED is only Rs 1.40 per liter for petrol and Rs 1.80 per liter for diesel. SAED, AIDC and RIC are not shared.

“The basic ED that can be shared with the states has not been touched. Therefore, these two tariff cuts (November, 21 and yesterday) bear the full burden, ”he said.

“Yesterday’s tariff reduction has an impact of Rs 1,00,000 crore a year for the Center,” he said The tariff reduction made on November 21 has an impact of Rs 1,20,000 crore per annum for the Center The effect of the Centre’s total revenue on reducing these two tariffs is thus Rs. 2,20,000 crore per annum. Chidambaram said on Saturday evening that the reduction in excise duty was “equal to looting Peter more and giving less to Peter”! “FM’s advice to the states is meaningless. When he reduced the central excise by one rupee, that rupee was 41 paise for the states, “he said.

On Sunday, he withdrew, contrary to what he said on Saturday. To that extent, I have corrected. “Sitharaman said the RBI data shows that the total development expenditure of the Modi government in 2014-22 was Rs 90.9 lakh crore.

“In contrast, only Rs 49.2 lakh crore was spent on development in 2004-14.” “Our government has so far spent Rs 24.85 lakh crore on food, energy and fertilizer subsidies and Rs 26.3 lakh crore on capital formation under OPMOIndia @narendramodi. In the 10 years of the UPA, only Rs 13.9 lakh crore has been spent on subsidies, “he added.

Related Posts

Leave a Reply

Your email address will not be published.