The CPI(M) leader said government's talk about subsidizing Petro products sought to "conceal the fact that taxes on petroleum products constitute the biggest chunk of revenue for the government"। I believe this is true to a certain extent .The current tax structure around the fuel import and sell is like the two-headed serpent that has his watchful eye on you even if you try to hide. Government is earning revenue both from the tax that is levied on crude oil import and as well from the subsidy that is collected in the form of tax from the common man on the Petro products. The later accounts to 51 % on petrol, which, definitely does not equals to the taxes seen in countries like Pakistan, Srilanka and Thailand, where it can be as low as 24%.
The crude oil import is based on the prevailing global crude oil prices and so are the fuel prices as end products, which, are also based on global manufacturing rates। But the key point here is that the domestic manufacturing/ refining costs are much lower as compared to the global refining cost. So where is the rationalization of fuel prices prevailing in India. Why are the prices in India still higher in spite of the manufacturing costs being lower?
If, Government wants to benchmark the prices, then it should be compared with the neighboring countries and fuel should be priced looking at the common mans pocket size. Government is because of its people and should be for the people.
There are few good initiatives that are expected to be included in the policies like implementing cross subsidies, which means, having put more subsidies on petrol and giving some relief on the household cooking gas and kerosene so that poor can afford it.
Country has recently witnessed the cacophony that was demonstrated by Bharat Bandh, which, although was well supported by large mass of people, still couldn’t change much। We all know this may not be the right way of doing it yet we don’t have an option, unless some good reforms are brought into practice.
No comments:
Post a Comment