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CPI-M opposes excise hike on fuel price

PTI 14 Nov 2014, 14:38:07 PM IST

New Delhi: The CPI-M Friday strongly opposed the government's decision to increase excise duty on petrol and diesel that has pushed up their price by Rs.1.50 a litre.

“Petrol and diesel are already heavily taxed, and this constitutes a major part of the retail price,” the Communist Party of India-Marxist said. “Therefore, there is no justification for this tax hike.”

The CPI-M accused the government of misleadingly stating that this hike would not result in an increase in the retail price of petrol and diesel.

“However, what it actually does is to prevent a further reduction in the retail price which is due.

“This amount is being mopped up to augment government revenue to the tune of Rs.6,000 crore in the current financial year.

“Not only the people have been deprived of a substantial reduction in petrol and diesel prices but in future when international oil prices rise, the tax burden on the people will increase,” it said in a statement.

“There is a need for an immediate review and revision of the tax structure on petroleum products. The iniquitous ad valorem tax should be given up and a more rational tax structure instituted.”