Rajasthan CM Ashok Gehlot. (file photo)
Rajasthan Chief Minister Ashok Gehlot (Ashok Gehlot) has written a letter to the Union Home Minister Amit Shah urging the Central Government to further reduce the excise duty applicable on petrol and diesel so that the people suffering from inflation can get relief. Gehlot wrote in his letter that with the reduction of excise duty by the Center, the VAT of the states automatically reduces proportionally.
He said in the letter that due to reduction of excise duty on petrol by Rs.5 per liter and Rs.10 per liter on diesel by the Central Government, the VAT rate in the state automatically reduced by Rs.1.8 per liter on petrol and Rs.2.6 per liter on diesel. Is. Due to this, there will be a loss of about Rs 1800 crore per year in the VAT revenue of the state.
Firms asked to be strict
He said that to give relief to the people of Rajasthan from the ever-increasing prices of petrol and diesel, our government had reduced VAT by two percent earlier this year on January 29, 2021. Due to this, the state lost one thousand crore rupees per year in VAT revenue. In this way, the burden of total revenue loss of 2800 crores per year has come on the state treasury.
The Chief Minister urged the Central Government that the Center should ban the petroleum companies that they should not increase the prices of petrol and diesel every day, because in doing so, due to the increase in the price of petrol and diesel, the relief given by the Central and State Government to the common man. The profit will be zero.
He wrote in the letter that the Central Government has progressively increased the special excise duty on petrol from Rs.6 to Rs.11 per liter and additional excise duty from Rs.2 to Rs.18 per liter and special excise duty on diesel from zero to eight. Rs. per liter and additional excise duty has been increased from Rs. 2 to Rs. 18 per liter.
decrease in revenue
Similarly, in the Union Budget of 2021, Agriculture Infrastructure Development Cess was imposed which is Rs 2.50 per liter on petrol and Rs 4 per liter on diesel. The benefit of the above increase is available only to the central revenue whereas the basic excise duty distributed among the states has been progressively reduced, thereby reducing the share of taxes received by the states.
He said that despite the reduction in revenue due to COVID-19, our government has given impetus to the work of development and social security. In such a situation, the payment of Rs 5,963 crore of GST reimbursement by the Central Government to the State Government is challenging for the financial management of the State.
demanded payment of arrears
Gehlot said that in order to strengthen financial federalism, the Central Government is again requested to pay the above arrears at the earliest and the period of GST compensation reimbursement to the states should be extended till the year 2027. The Chief Minister said that the Government of Rajasthan has requested the Central Government from time to time to reduce the excise duty so that the common man can get the benefit of reduction in excise duty and VAT (Value Added Tax) simultaneously.
He appealed to the Central Government that the Center should provide relief to the people suffering from inflation by further reduction in excise duty. Gehlot said that despite the impact of Corona and all other financial challenges, the Rajasthan government is ready to bear the loss in the state’s VAT revenue in public interest if the excise duty is further reduced by the Central Government.
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