Monday, Jun 16
NEW DELHI - State governments today asked the Centre to partially compensate them for the projected revenue loss of around 80 bln rupees due to cut in sales tax on petroleum products.
"The states together would lose 80 bln rupees in the remaining months (of the current financial year) on account of cut in sales tax. We want the Centre to compensate 50% of this (revenue loss)," Empowered Group of State Finance Ministers Chairman Asim Dasgupta told reporters after the panel's meeting here today.
Ten state governments have reduced sales tax on petrol and 15 states have cut sales tax on diesel to cushion the steep increase in auto fuel prices announced by the Centre earlier this month.
On Jun 4, the centre had raised prices of petrol by 5 rupees per L and diesel by 3 rupees per L. It also increased price of cooking gas by 50 rupees per cylinder.
"The states have limited resources and cannot endlessly take revenue hit," Dasgupta said.
He said the states have also sought from Centre details of policy of price fixation of petroleum products as their base price varies from one state to another.
On the issue of cut in sales tax on aviation turbine fuel, Dasgupta said the issue will be discussed in the next meeting.
"We have asked for some more data from the civil aviation ministry and after we get the information we will take it up," he said.
The Empowered Group of State Finance Ministers will meet again between Jun 21-23 in Srinagar.
Last week Civil Aviation Minister Praful Patel sought declared goods status for aviation turbine fuel to bail out airlines facing mounting losses due to the steep increase in its prices.
In Delhi, a kL of ATF has increased to 66,226.66 rupees from 45495.82 rupees in January.
ATF comprises 40-45% of airlines' total operational cost.
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