Oil price relief hingeson coffers, says Isaac

T.M. Thomas Isaac Photo: S. Gopakumar

T.M. Thomas Isaac Photo: S. Gopakumar  

The government will relinquish the additional revenue from oil price hike only when the State’s financial position improves, Finance Minister T.M. Thomas Isaac has said.

Replying to a notice on an adjournment motion sought to be moved by Thiruvanchoor Radhakrishnan in the Assembly on Wednesday on the need for the State to eschew the additional tax income accrued from the hike in petrol and diesel prices, Dr. Isaac said the government would consider the demand once tax collection increased under e-way bill and Goods and Services Tax. But he clarified that he would not emulate the previous UDF government’s model of granting a concession and then hiking the tax rates.

The UDF raised the tax on petrol from 23% to 31% and introduced a road cess of Re.1 on demitting office, he said.

Despite the fall in crude oil prices in the international market, oil prices were soaring since the Centre had hiked the additional excise duty nine times and the proceeds from the hike were not being shared with the State governments as campaigned by the Sangh Parivar. The NDA government hiked the excise duty on petrol from ₹9 to ₹21. The same was true in the case of diesel too, he said.

Mr.Radhakrishnan wanted Dr.Isaac to take a cue from the UDF, which, he said, gave up the additional income four times.

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Printable version | Apr 6, 2020 1:20:58 PM |

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