A day after the Centre blamed non-BJP ruled states for the high fuel prices, Telangana Industries Minister K T Rama Rao lashed out at the Central government for reducing the windfall tax on crude oil “instead of transferring the benefit to the common man by lowering petrol, diesel prices.”
On Thursday, speaking in Parliament, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said that “If the West Bengal, Tamil Nadu, Telangana, Andhra Pradesh, Kerala and Jharkhand reduce VAT on fuel, petrol, diesel prices will come down for consumers there.”
“The Centre is being insensitive to common people’s interests while it is favouring a handful of corporate companies,” said KTR, son of BRS chief K Chandrasekhar Rao.
KTR’s reaction came following the Modi government’s decision reportedly slashing the windfall profit tax on locally produced crude oil while also reducing the export tax on diesel.
“The Modi government did not reduce prices of petrol, but it brought down the taxes paid by corporate companies. This clearly shows that corporate companies are its top priority,” said KTR on Friday.
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The minister said that Rs 35,000 crore was saved by importing crude oil from Russia at a discounted price and that only two to three companies benefited from it. He said that corporate companies refined the crude oil bought from Russia and exported to other countries.
KTR demanded to know “why the Centre issued permission to export the crude oil bought from Russia, and not used within the country.” “Ordinary Indian citizens did not benefit from it. Who is pocketing profits of the company?” he questioned.
Finding fault with the central government blaming states like Telangana for high petrol prices, KTR pointed out that the Centre-imposed cess is the reason for the high prices.
Puri had said that people in Telangana and other states are paying more for fuel “because their governments continue to levy heavy VAT.”
“Rs 30 lakh crore was collected in the form of cess, while Value Added Tax was not increased in Telangana since 2014,” KTR reacted.
“Petrol can be reduced to Rs 70 per litre and diesel to Rs 60 per litre if the Centre scraps its cess.” Telangana is among the states which has not reduced its share of taxes after the Centre had cut excise duty on petrol and diesel by Rs 8 and Rs 6 respectively in May.