During the COVID-19 review meeting, the Prime Minister named a few States including Kerala and said that those States have not reduced their taxes on petroleum products. Furthermore, he also referred to Cooperative Federalism. It should be noted that Kerala has not increased its taxes on petroleum products even once over the last six years. Whereas, since 2014 the Central Government has increased its taxes on petroleum products 14 times, and reduced it only 4 times. It needs to be noted that the increase made by the Centre was not on the basic excise duty, which is to be shared with the States.
In 2014, the total excise duty on petrol was ₹ 9.48. It had been gradually increased to ₹ 32.98 and is now ₹ 27.90. The excise duty on diesel had been increased from ₹ 3.56 to ₹ 31.83 and is currently ₹ 21.80. Surcharges and Cesses now make up 15 per cent of the Central Government’s total tax revenue. Surcharges and Cesses are not included in the divisible tax pool which are to be shared with the States, according to Article 270 of the Indian Constitution. Taxes have been raised by the Central Government in such a way that they do not fall under the divisible taxes recommended by the Finance Commission.
Due to the delay in the disbursement of our revenue share, including GST compensation, States are facing serious financial constraints, on top of the ongoing Covid induced crisis. This is not in line with the basic tenets of Cooperative Federalism. It is unfortunate that a State like Kerala which has never raised taxes even when the Centre has done so 14 times and reduced it only 4 times, is being criticised at an inopportune moment. It should not have come from the Prime Minister, who is well aware of the present financial condition of the States which have to bear the lion’s share of social welfare expenses.
The effort to imply that the responsibility of price rise in the country does not fall on the Central Government which is in charge of fiscal management, but on the States, should not have happened within a Federal system. The lives of ordinary people should not be made unbearable. For that, excessive tax hikes should be avoided. It is requested that in the national interest, the Central Government should take steps to curb the recurring increase in fuel prices, through appropriate policies. The sufferings of the people caused by spiraling fuel prices cannot be alleviated by unreasonably blaming the States.
കൈരളി ഓണ്ലൈന് വാര്ത്തകള് വാട്സ്ആപ്ഗ്രൂപ്പിലും ലഭ്യമാണ്. വാട്സ്ആപ് ഗ്രൂപ്പില് അംഗമാകാന് ഈ ലിങ്കില് ക്ലിക്ക് ചെയ്യുക.
കൈരളി ന്യൂസ് വാട്സ്ആപ്പ് ചാനല് ഫോളോ ചെയ്യാന് ഇവിടെ ക്ലിക്ക് ചെയ്യുക
Click Here
