New Delhi: A day after the announcement of heavy fuel Tax Cut, Union Finance Minister Nirmala Sitharaman On Sunday, the two rounds of duty cuts – the last to be held in November – will cost the exchequer Rs 2.2 lakh crore annually and the share of states from the tax pool will not be affected as the Center opted to cut cess on petrol. Diesel, which are outside the divisible pool.
However, non-BJP ruled states protested against matching the Centre’s move by cutting VAT. Most of them argued that since tub Normally charged as a proportion of the value (valorum) after adding up the central duty and other costs, the sharp reduction in excise duty automatically reduced the tax in most states.
Bihar only, where BJP A partner in the government has hoped for a reduction in VAT, Chief Minister Nitish Kumar said, adding that he would discuss the issue with coalition members. In Karnataka, CM Basavaraj Bommai said the government will consider further cuts, while Odisha is expected to take a decision in the next few days.
Sitharaman’s remarks came after the opposition “criticized” or “evaluated” the decision announced on Saturday, which aims to highlight some of the impact of the Russia-Ukraine conflict on Indian households with high meals and fuel prices. The Center on Saturday cut tax by Rs 8 on one liter of petrol and Rs 6 on diesel. On November 4, excise duty was cut by Rs 5 on petrol and Rs 10 on diesel.
However, non-BJP ruled states protested against matching the Centre’s move by cutting VAT. Most of them argued that since tub Normally charged as a proportion of the value (valorum) after adding up the central duty and other costs, the sharp reduction in excise duty automatically reduced the tax in most states.
Bihar only, where BJP A partner in the government has hoped for a reduction in VAT, Chief Minister Nitish Kumar said, adding that he would discuss the issue with coalition members. In Karnataka, CM Basavaraj Bommai said the government will consider further cuts, while Odisha is expected to take a decision in the next few days.
Sitharaman’s remarks came after the opposition “criticized” or “evaluated” the decision announced on Saturday, which aims to highlight some of the impact of the Russia-Ukraine conflict on Indian households with high meals and fuel prices. The Center on Saturday cut tax by Rs 8 on one liter of petrol and Rs 6 on diesel. On November 4, excise duty was cut by Rs 5 on petrol and Rs 10 on diesel.