Thread by @jamewils

You increased the Excise duty on Petrol from Rs. 9.48/litre in 2014 to Rs.32.90/litre now.

When global crude oil prices fell, you raised taxes & did not pass the benefits to people.

Now instead of blaming global crude price, try to ameliorate some pain of people!

https://twitter.com/PTI_News/status/1401845102541082630

Also in MMS era UPA spent around 10-11% of revenue as fuel subsidies, so they systematically deregulated petrol prices.

But Modi Govt instead of passing the benefits to deregulated petrol prices to people started taxing heavily.

Now

Look at Union Budget 2021-22, the total revenue receipts is 34.12 lakh crores & the excise duty from fuel comes 3.35 lakh crores, that is almost 10%.

Since you lack imagination to tax & also help your cronies, you gone for the shortcut of taxing heavily every single person!

Also understand that while MMS was PM, the basic excise duty (BED) ₹6.35/l out of the total excise duty of ₹9.48/l. So UPA shared ₹2.67/litre with States.

Now Modi regime BED is ₹1.40 of total duty of ₹32.90 & share only ₹0.57 with States!

Hail Cooperative Federalism 🤣

This Government is now on a trap, without the heavy fuel tax, their Revenue Deficit will widen & they are clueless how to create innovative taxation.

They need to please their crony sponsors, so their corporate tax reduction burden is passed on to each one of us!

Look at Dr. Kirit. S. Parikh Committee Report dated October 2013 urging deregulation of Diesel, where one litre diesel has an under recovery of Rs. 10.51/litre.

Now Modi charges ₹31.80/litre of Diesel as tax & let the inflation to touch the sky!

Now the time of Exhibits.........

See Dr. Kirit. S. Parikh Committe Report ⬇️

Price Build up of Petrol & Diesel Prices in Delhi as of June 1st, 2021

As even @the_hindu too misquoted the excise duty on Petrol & Diesel during UPA era, let me put the record straight here from the answer given in Rajyasabha..

Also understand that none of the State Governments will not be willing to reduce our burden by let go the additional revenue they get through sales tax/VAT, they indirectly get benefitted when oil companies raise prices, since it is an ad Valorem tax!

While Central Government charges specific taxes, which is a fixed taxation on each litre of petrol irrespective of price, States still charge sales tax/VAT which is ad Valorem tax, ie, percentage tax. So States tax on sum of petrol prices + central tax + dealer commission

Interesting thing is that if you look at the State budget and Union Budget, you can see a stark difference!

In UPA era, State Budgets heavily relied on fuel taxes, but now they are not a dominant tax.

But same time Union Revenue now heavily depends upon fuel tax!