Goa slashes petrol prices by Rs 11

Discussion in 'Politics & Society' started by ejazr, Mar 28, 2012.

  1. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    This is an excellent move by the BJP govt. in Goa. I have earlier discussed how the major portion of the tax revenue goes to the states and how half of the price of petrol we pay is centre and state taxes. By cutting VAT and moving to a fixed rate of tax, the Centre can also cut its subsidies. This way, the finances of the Centre will improve and at the same time, the consumers will not get impacted as much.

    Goa slashes petrol prices by Rs 11: States should emulate example, reduce petrol prices, says Rajiv Shukla - The Economic Times

    NEW DELHI: With the Goa government proposing a reduction in petrol prices by Rs 11, Minister of State for Parliamentary Affairs Rajiv Shukla today said the other states especially the BJP ruled ones should emulate the step to ease the burden on the common man.

    "As far as petrol and diesel are concerned, states get more tax than the Centre from petroleum products. They impose more tax and get more. If states abolish taxes, then it will ease the burden on the common man," he said.

    Talking to reporters outside Parliament, he said long before Goa took the step, the Vilas Rao Deshmukh government in Maharashtra and the Andhra Pradesh government had initiated such a move.

    "Central government had already reduced the custom duty...the share of the state govt is far bigger as far as money generated from petroleum products is concerned. State government should think over this (emulating Goa)," he said.

    Shukla said the state government gets about 1.6 lakh crore as tax from petroleum products.

    The Manohar Parrikar government had yesterday announced that only 0.1 percent value added tax (VAT) component would be levied by the state government during the presentation of the Budget.

    Shukla said BJP-ruled states like Gujarat, Karnataka, Chhattisgarh as well as Bihar should also emulate the step.

    Former Goa chief minister and Lok Sabha Member Francisco Sardinha said the move by the government was in keeping with the poll promise of the ruling party there.


    --------------------------------

    Just cross posting an earlier post

     
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  3. nitesh

    nitesh Mob Control Manager Stars and Ambassadors

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    Only if the taxes are rationalized, we can see price of fuel coming down drastically, it might cause a drop in revenues for short time, but this can be compensated by introducing more toll roads, where build the infra in PPP models, and let people pay for the use of roads.
     
  4. Yusuf

    Yusuf GUARDIAN Administrator

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    Three cheers!!! I hope the BJP government of Karnataka does the same. We are paying 74/ltr :(
     
  5. Yusuf

    Yusuf GUARDIAN Administrator

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    The tax on petrol is not for building roads. That they toll anyways.

    Petrol is cash cow for all govts that allows them to scam when they come up with schemes.
     
  6. VIP

    VIP Ultra Nationalist Senior Member

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    Rajiv Shukla said, especially BJP ruled states should take example and reduce the VAT.Well, what about congress ruled states...Politicians never leave any chance...
     
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  7. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    The highest VAT is charged by Congress ruled AP which is 33%. All state govt. are guilty including Congress govt.s Congress should force states ruled by them to move to the Centre model of just charging a fixed 10or 15 Rs per litre rather than a percentage tax. The Centre can't really do anything to reduce the taxes because every thing it gets it pays out in subsidies or passes on to states as revenue to them.

    This way if the price of petrol increases, there will be no increase in taxes giving consumers a double whammy.

     
    Last edited: Mar 28, 2012
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  8. p2prada

    p2prada Stars and Ambassadors Stars and Ambassadors

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    I am waiting for the day when petrol prices in Bangalore breach the Rs 100/litre milestone for the first time in the country. Can't wait!!!

    :banplease:
     
  9. sob

    sob Moderator Moderator

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    The move by the Govt. in Goa is going to be a game changer for the other states.

    Since yesterday evening all FM radio stations have been discussing non stop on the fuel pricing issue and today it has been prominently covered by the newspapers on the front page.

    There is going to be a huge pressure on the State Govts. to reduce the VAT. Rajasthan Govt has tried to be too clever by half they have reduced the price by about Rs. 1.40 and they expect the people to be happy. Now with the Goa news, the CM will be in the frying pan.
     
  10. sob

    sob Moderator Moderator

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    Till now the pressure from the people and media had been on the Central Govt. to reduce the prices. Now the cat is out of the bag and the people have realised that it is the state govts. who have been enjoying the cream and they have it in their hand to reduce the burden on the common man.
     
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  11. Ray

    Ray The Chairman Defence Professionals Moderator

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    It will put the cat amongst the pigeons.

    And BJP will claim another 'first'!

    Genuine and cognizable step for the back-broken am admi!

    I believe fuel pricing is a big dhop. I heard Yechuri say, if I understood him correctly, that though refining is done at Indian rates, the pricing calculated is in terms of international rates!
     
    Last edited: Mar 28, 2012
  12. KS

    KS Bye bye DFI Veteran Member

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    Goa is a small state which might be able to do such things and get away with that....I dont think bigger states can afford that luxury considering it will make a signifcant dent on the state revenues.

    p.s.; Very soon, expect a thriving black market in Karnataka and Maharashtra for smuggled petrol from Goa.
     
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  13. Ray

    Ray The Chairman Defence Professionals Moderator

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    Rajiv Sukla ( as he pronounces his name) is a jack of all trades and master of none!

    He is a knowall!
     
  14. Ray

    Ray The Chairman Defence Professionals Moderator

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    Smaller the State, the more difficult it is to generate revenue.

    But it (smallness of a State) does not in any way cut down on the aspirations of the people.

    Bigger the State, it is greater a capacity to absorb financial shocks!

    Of course the curse of racketeering and funnelling into neighbouring States will always be there.

    It will be the same way, the car registration works. Book a car in Chandigarh and register it there and drive it in Delhi.
     
    Last edited: Mar 28, 2012
  15. Iamanidiot

    Iamanidiot Elite Member Elite Member

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    Au contraire smaller the state easier to adminster and Goa has a booming Tourism industry which generates revenue which can offset the petrol cuts
     
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  16. nitesh

    nitesh Mob Control Manager Stars and Ambassadors

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    YB, i am just suggesting alternate way of revenue, rather then putting the eggs in petrol basket. This will ensure good infrastructure too
     
  17. Ray

    Ray The Chairman Defence Professionals Moderator

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    Hardly.

    Tourism revenue cannot run a State and its projects.

    If it could, then Nepal would be a superpower, or for that matter, Fiji or Mauritius and Seychelles!

    Administering and revenues are two different things.
     
  18. Iamanidiot

    Iamanidiot Elite Member Elite Member

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    Sir,Goa is hardly the Size of a district and it captures a major chunk of Tourist traffic coming to India ,which in turn brings revenue from liquor,food and hotels add to that it provides a huge amount of employment to a large number of Goans.Property tax through land sales is good enough to fill the coffers of the goan government.Add to that VAT which brings indirect taxes
     
  19. arya

    arya Senior Member Senior Member

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    good thing all states should do the same
     
  20. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    The policy is not that Goa has reduced the petrol tax to zero. Even a 0.1% tax by Goa is still Rs 4.5 per litre.

    What we should move towards a fix tax rate across the board per litre. Reduce subsidies on petrol which is around Rs12 per litre to zero. Reduces centre taxes respective to say 5 Rs per litre for the Centre as it will no longer have to pay for the subsidies. And have an option for states to have upto a maximum of Rs10 per litre for States.

    For an average price of Rs 35-40 per litre, we end up with a sale price of Rs55-60 per litre which is quite reasonable. And then let the oil companies revise the price once a month.
     
  21. sehwag1830

    sehwag1830 Tihar Jail Banned

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    Goa has increased the tax on liquor by 8%. So they would gain there.
     

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