#FuelPriceHike A chart that explains how petrol and diesel cost is calculated.
1. Central Excise is constant. Money Centre gets does not increase or decrease with cost of fuel.
2. State VAT & surcharge is % of cost. Higher the cost, higher the earnings of States.
Pls share.
State VAT & surcharges per litre of petrol and diesel is in % and varies from State to State. Congress-JDS raised it to 32% after forming Govt in Karnataka. Maharashtra has highest VAT on petrol. AP on diesel. Bulk of WB revenue comes from VAT on fuel.
States have limited means of raising resources. VAT on fuel and tax on booze are rich revenue earning sources. States that have prohibition have to depend on VAT on fuel. One of the reasons why prohibition is ill-conceived. Strangely prohibitionists protest loudest on fuel price.
Last evening on Arnab's @republic show CPI spokie demanded subsidy on fuel to lower prices. That is a terrible idea. Someone has to pay the subsidy bill. Congress-UPA left behind oil bond bills totally Rs 2 lakh crore and more. 'Put it on the tab' is the worst thing Govt can do.
42% of taxes accruing to Centre devolve to the States.
Only way to cut taxes is to decrease Govt spending. Only way to cut spending is to downsize Govt. With millions being added to the population and India's population set to outstrip China's, how much can you downsize? Everybody wants freebies. But freebies don't come free. So.
Why should States accept decreased revenue by bringing fuel under GST at 18% or 28% Who will compensate the revenue fall? Common sense, no?
Absolutely. Centre must help States whenever calamity strikes. But surely that cannot be done by handing out IOUs? Where will the cash come from?
Yes, Govt expenditure can be cut by selling nonstrategic PSUs. There is no reason why Govt should be flying planes, running trains, operating factories, hotels, bus services or for that matter Doordarshan and AIR. But the fact remains any Govt is as socialist as the people are.
I have said this earlier and I will say it again. By end-2014 Modi Sarkar should have published a White Paper fully disclosing #India's finances and liabilities inherited from Congress-UPA. Not to do so was ill-advised. Argument that investors would have fled is sheer poppycock.
I can only repeat: A Govt is as socialist as the people are.
So onward to #Venezuela. Unfortunately, thanks to animal rights activists, we do not have sufficient animals in zoos to eat.
On Arnab's @republic show last evening I told our comrade from CPI (who claimed to know all) that the dream leftie economy, Venezuela, has contributed to global oil price rise. I added that Venezuelans are now eating zoo animals. He was offended. Of course.
On a more serious note, if you are concerned about fuel prices, read this excellent @Reuters analysis: mobile.reuters.com/article/amp/id…

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More from @KanchanGupta

Sep 16, 2018
Blame-aportioning was not intended purpose. I have pointed out the missing link in the chain that #Congress #BJP and #MSM seem strangely unaware of or are wilfully suppressing. It is for #CBI and Govt to explain why 'Look-Out Notice' was downgraded. Not my job. #MallyaLies 1/n
As far as I am concerned available evidence shows Vijay Mallya planned his exit meticulously. He travelled abroad in October and returned in November 2015. He travelled abroad twice in December 2015. He travelled abroad in January 2016. And then fled in March. #MallyaLies 2/n
Mallya showed up for CBI interrogation. Travelled abroad and returned. All this was to create the false impression that he was not going to flee. It was a criminal mind's work. That #CBI fell for it is amazing. Does not speak highly of its leadership. 3/n
Read 22 tweets
May 29, 2018
Vedanta Ltd’s Sterlite copper plant at Tuticorin has been shut after Church-led protests. It produced 40% of India’s annual copper output of 10 lakh tonnes; 1.6 lakh tonne was exported. Closure will impact 800 small & medium units. Thousands of jobs gone. indianexpress.com/article/india/…
The same people who forced Sterlite closure, the same Church, the same #jholawallas, the same #MombattiBrigade, the same bleeding heart #LeftLib dissenters, the same bile-spewing #Commentariat, and their patron saint, the same @RahulGandhi will now taunt Modi: Where are the jobs?
Make no mistake. Big forces are fomenting anti-industry protests in #India to beggar a rising economy. Church, #LeftLib bleeding hearts, opportunist politicians like @RahulGandhi (who used UPA to nix projects in #Odisha) are willing collaborators in this #HaltIndiaProject.
Read 12 tweets

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