Murli Deora Clarifies that Remarks of Kerala CM About Taxes on Petrol and Diesel Factually Incorrect ; Calls Upon State to Reduce Sales Tax
The Chief Minister, Kerala during the NDC meeting held yesterday, made a statement that Central taxes account for 51% and 31% of retail sale price of petrol and diesel respectively, which accrue to the Union Government exchequer.
The Minister of Petroleum & Natural Gas Shri Murli Deora clarified that it is factually incorrect.
In Trivandrum, Kerala, the retail sale price of petrol and diesel is Rs. 54.05 and Rs. 41.06 per litre respectively. Out of this, Central taxes account for Rs. 16.44 per litre i.e. 30.4% of the retail sale price of petrol. Similarly, Central taxes account for Rs. 6.56 per litre i.e. 16% of the retail sale price of diesel.
State taxes account for Rs. 11.99 per litre i.e. 22.2% of the retail sale price of petrol. State taxes account for Rs. 8.06 per litre i.e. 19.6% of the retail sale price of diesel.
Shri Deora once again said that the State Government should reduce the Sales Tax. He stressed that at least the increased part of sale tax, which the State is collecting after the price increase, should be removed, for the benefit of consumers in the State. He added that the prices of petroleum products were required to be increased because of rising global oil prices. He reiterated that the Union Government has raised the prices only marginally and there is still an uncovered gap of about Rs 53,000 crores estimated for 2010-11. Besides this, high amounts of under-recoveries remain on PDS kerosene and domestic LPG. He pointed out that prices of LPG and kerosene are the lowest in India as compared to neighbouring countries.
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RCJ