Within short time after NDA Government was formed, The cost of a barrel crude oil has fallen from 110 Dollars to 40 Dollars. Still, Union Government didn’t extend the benefits of crude oil price reduction to the public.
Centre received a revenue of Rs 1,00,339 crore on Petroleum Products in the financial year 2012-13 (UPA 2). For 2013-14, The revenue stood at Rs 1,06,091 crore. After the formation of NDA Government, Revenue increased to Rs 1,26219 crore (fiscal 2014-15). For 2016-17, Revenue generated through Petroleum Products has been Rs 2,09,536 crore. It has gone up to Rs 2,73,502 crore in the financial year 2017-18.
Centre reduced Excise Duty by Rs 2 and Additional Excise Duty by Rs 6 in the Union Budget 2018-19. However, Common Man wasn’t able to receive the benefit in any manner as the price of fuel only kept increasing.
When State Governments have been appealing for reduction of Tax, Centre had in return asked them to reduce VAT. Isn’t this an insensitive approach?