Petrol cess on Cards In India ?

Looks like the garib taxpayer, the governments favorite Bali ka bakra is to be made to bear a part of the burden of avoiding the almost noratna psu oil mktg companies that are loosing about 150 to 200 crores daily from impending bankruptcy. That too in a year of record Inflation, Prise rise , rise in indirect taxes like Service tax @ 12.25% vat at 4 to 16% etc then we have excise duty and maharashtra tax , a mumbaikars in his e/c bill pays more tax than he pays for his electricity, for gods sake he even pays a Reliability cess…

ive detailed the oil mess in an older post mid month musings 2

Swaminomics, a column by SAA has a rather interesting post

read Oil subsidies are bogus socialism

Secondly looks like IBN is scared out of its pants after the Yadav and Rajdeeps Karnataka election exit poll fiasco and is allowing a bit of uncensored commenting on its site and i am happy to note people are getting very informed and intelligent and are not taking too kindly to this kind of autocracy by the Govt. Read this post and more interestingly the comments.

Udhatya This is ridiculuos ! The user has to pay for it and not the common salaried class. Why should a calaried employee who commutes to office by cycle pay for all the petrol and diesel consumed by Chidambaram and Murli deora’s vehicles. Media please do something to prevent the continued exploitation of the salaried class.

Newton Rs 95,000/-Crores Fertilizer subsidy, Rs 71,000 Crores Loan Waiver to farmers. Then where will govt have money for fuel. We all thought that the country’s finance is well managed by our Economist PM and Harvard qualified FM. But looks like we are in a mess.

sham sundar How Lame & Dumb Govts funtions, an illustration:

Step 1: Ruin the oil companies by wiping out their cash reserves
Step 2: Do nothing about oil prices for 4 whole years
Step 3: Listen to the Awaful “Reds”
Step 4: Stop forward movement in reforms
Step 5: Kill the nuke deal
Step 6: Loose Karnataka elections & stare at the barrel!!!
Step 7: Hit the tax payers with a cess!!!
Results: We have oil marketing companies weeks away from bankruptcy, when world over they are racking in the moolah!!! A govt months away from being kicked out from office!!! A economy on slowing down!!! Inflation going thru the roof!!!
A sad report card for a Govt supposedly run an economist PM!!! Truth is always a bitter…What else can you expect from a man, who is a PM by mere accident!!! How will he ever understand the pulse of the people as nither is he elected…nor is he a politician…Nor is he a PM!!!
Wake up India….God bless this country!!!!

Searover Ofcourse.. its the salaried class that gets burdened always.
Lets consider following options
1. Increase the fuel price and reduce excise and other taxes to negate any increase to consumers
2. Start taxing farmers who earn more than 10L
3. Start taxing landowners who own more than 100acres of land.
4. Increase the tax/excise of cigarettes and Alcohol by 50%
Wonder why farmers who own mercedes cannot be taxed ?
I wonder if UPA govt is reading anything into Urban vote migration to BJP in karnataka. And if those are any signs to come then this new cess is going to ensure that we have BJP govt next year.

I’m getting tired of these posts and as Suda says , all we can do is talk …

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7 thoughts on “Petrol cess on Cards In India ?

  1. Suppose a tax payer is not using petrol (like if he doest have a car/bike on his own) what would be his need to give petrol cess?
    Ifthe oil companies are on loss- tax the public.
    If the farmers are on loss – give away tax payers money to save their loss.

    link

    ppl in bangalore already pays Rs 2/lit extra for Bangalore development.

    they have plans to ration out petrol to each petrol bunk…. heard from a petrol bunk owner friend of mine. if that is done, our petrol bunks wud be like ration stores.
    They cant sell beyond a limit every month
    Another plan is to sell petrol on prices depending on the car. like for small cars at one rate and for cars in luxury segment to pay extra.

  2. well people that are not alligned together like bcs obcs muslims etc should start to group ghetto vote
    only collective bargaining works sometimes in this sort of democracy else the lone voter taxpayer is the bkb as i mentioned

    this govt policy is without vision , putting the burden on future generations, is anti minority shareholder, anti taxpayer anti public wealth and anti growth

    and xy wont all that rationing breed corruption?
    instead why not waive off mkt taxes and make sure the retialers keep essentails prices in control and pass on benefits?
    i have been estimating this right since this budget

  3. I don’t know exactly but I think if we are in country having *generic* system (like India), then there will be generic taxes. We need to restructure whole system to make them specific.

    As far as I know, we are paying specific taxes like profession tax, but as petrol and electricity are generic things where we cant specify who will pay how much tax!( I mean everyone will need to contribute to make all the sum)
    I am trying to make my point clear but cant make it much, hope you get what I am trying to say.

  4. They have found a good way ( good only for those in Power! ) to compensate the Oil Companies without raising the inflation numbers.

    Hey, but they deny it: http://inhome.rediff.com/money/2008/may/28oil1.htm

    arpit inflation is on its way up ,this is a desperate move to keep oil cos afloat they cant really control it thanks to the fiscal mess and no will to let the rupee go up

  5. nita ,
    though u could be right and the cess could be put on the 30% + slab of it payers this is a bit unfair

    but a price hike or price hikes that are based on mkt dynamics are better because they also help to curtail demand and wasteful expenditure, as people with cars will think twice before taking that casual drive etc
    which is more important as the policy can get unsustainable without curtailing demand

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