So for a Rs 22 liter petrol at pumps we people pay Rs 28 tax extra.
Govt. is thinking to impose more price hike to curtain with the current crude oil bubble in International oil crisis.
If Central Govt. wish, it can still reduce the price of petrol in the current crisis situation, but it doesn't intend to do so, instead trying to fool the people and Nation. This is the basis LEFT parties are opposing*, just generating more profits for the oil marketing companies.
Don't you think you should pass this message to create more awareness among the people.
Readers Opinion.
1) If you take any product, there is excise duty or customs duty. This is not the sole problem of petrol. Governments need money for its developmental activities. For this Central Govt Collect Excise and customs duti
RE:Petrol Fever - A Real Eye Opener
by Kavitha on Jun 07, 2008 08:56 PM Permalink
Readers Opinion. 1) If you take any product, there is excise duty or customs duty. This is not the sole problem of petrol. Governments need money for its developmental activities. For this Central Govt Collect Excise and customs duties. It is not possible to avoid such taxes. It is the duty of every citizen to pay taxes. Major portion of tax revenue is used for defence and for giving various subsidies.( Ofcourse (I agree) , some of the developmental activities are not reaching the common man. It is going to the pockets of our dirty politicians (including the left) and the bureaucrats.)
2) From the above table itself it is clear that extra amount of Rs.28/- is paid towards taxes and transportation. It does not "just generating more profits for the oil marketing companies". Cost of crude oil per barrel is $ 130, that means, Rs. 5460/- per barrel. One barrel is equal to 42 gallons .1 gallon=3.7854liters. That means one barrel =159 litres. Thus cost per litre of crude oil is Rs.34.34. Thus oil companies are losing Rs.12.40 per litre. Please note that apart from the cost of $130/- per barrel, there is transportation, handling and insurance charges. Apart from this Rs.5.98 per litre is to be incurred for processing crude oil. Thus basic price of petrol, after considering processing gain and other by- products, is around Rs 41.23 per litre. Now, where is the question of generating more profits for the oil marketing companies?
RE:RE:Petrol Fever - A Real Eye Opener
by Kavitha on Jun 07, 2008 08:57 PM Permalink
*3)Lefties (commies)are saying that central government should not increase oil price, but reduce excise duty and other taxes. States in which lefties are ruling is levying sales tax between 24.6% to 29.1%. Why they are not withdrawing sales tax on Petrol. If they reduce sales tax from 29% to 12.5%, people of those states will gain more than Rs.3/-per litre. Lefties are playing vote bank politics.Why can't they withdraw support for UPA government at the centre? They are enjoying the benefits of both ruling party and the opposition.
4) Even if the entire burden of international price hike of oil is suffered by the centre, the centre will run a deficit budget which in turn will lead to inflation. For meeting the deficit, the centre will have to do any of the following or a combination of them 1) borrow from others 2) Increase various taxes 3) Increase money circulation by circulating more money. All these steps will have its influence in Inflation and increasing the agony of the people.
Conclusion.
This is the part of a cycle which we will have to suffer. Root cause is Mr. Bush, Mr.Sadam and few others.
RE:Petrol Fever - A Real Eye Opener
by venkat a on Jun 08, 2008 07:08 AM Permalink
I agree what u said, but this article says where those excise duty or customs duty money goes??? If that is been utilized properly, automatically the excise or customs duty can be reduced (without affecting the money towards developmental activities). This PM and FM made those money worthlessly as giving various subsidies just to fill-up their vote bank, But the Peoples are well aware of that, This should not be forgotten forever. Whenever this congress Govt, comes it happens like this, remember 1996 when congress was in power, the Same FM sent out the useless imagining to recover the black money, and most of the factories and companies were closed.
