In a point-by-point rebuttal to Finance Minister Nirmala Sitharaman’s remarks that the federal government has to pay for previous oil bonds and that is why it might probably’t lower excise responsibility on oil, the Congress celebration has taken a jibe saying “not simply financial system however even your account can also be flawed”.
Congress nationwide spokesperson Gurdeep Singh Sappal, in a collection of tweets, mentioned the entire worth of oil bonds in 2014, when PM Modi got here to energy, was Rs 1,34,423 crore. He mentioned until April 2021, the federal government had paid oil bonds value Rs 3,500 crore solely. He mentioned on the identical time, the federal government earns Rs 3 lakh crore each year as excise assortment on petrol and diesel.
“Not simply financial system, even your accounts is flawed Ms FM!” he tweeted. He mentioned the upper excise assortment from petroleum merchandise was Rs 3.4 lakh crore in 2020-21. “(It) Is predicted to rise past 4 lakh crore now,” he added.
Speaking concerning the Oil Bonds liabilities of the federal government this 12 months, he mentioned it must pay “Rs 5,000 crore on October 16; Rs 5,000 on November 28; and Rs Rs 9,989.96 crore as curiosity. That could be a whole of Rs 19,989.96 crore in 2021-22”.
“And tax assortment on petro-products is over Rs 30,000 crore monthly!” he added.
Sappal mentioned final 12 months, income from tax on petroleum merchandise went up by Rs 1.8 lakh crore. Throughout the identical interval, the company tax went down by Rs 1 lakh crore. “Company tax fell from 3.34% of the GDP in 2017-18 to 2.32% of the GDP in 2020-21. So now you recognize who’s paying and who isn’t!” he added.
On the FM’s remarks that Rs 70,195.72 crore have been paid as curiosity in 5 years, Sappal mentioned: “That’s simply Rs 14,000 crore a 12 months. Tax being collected from petroleum merchandise is now over Rs 7,000 crore every week! Utilizing huge numbers, with out correct context, is clearly to alarm and confuse the general public,” he alleged.
Finance Minister Nirmala Sitharaman on Monday dominated out a lower in excise responsibility on petrol and diesel to ease costs, which have touched an all-time excessive, saying funds in lieu of previous subsidised gasoline pose limitations.
Petrol and diesel in addition to cooking gasoline and kerosene have been bought at subsidised charges through the earlier Congress-led UPA authorities.
As a substitute of paying for the subsidy to deliver parity between the artificially suppressed retail promoting value and the price that had soared due to worldwide charges crossing USD 100 per barrel, the then authorities issued oil bonds totalling Rs 1.34 lakh crore to the state-fuel retailers.
These oil bonds and the curiosity thereon are being paid now. “If I didn’t have the burden to service the oil bonds, I might have been ready to scale back excise responsibility on gasoline,” she informed reporters as we speak. “Earlier governments have made our job tough by issuing oil bonds. Even when I need to do one thing I’m paying via my nostril for the oil bonds.”
Sitharaman, who had raised excise responsibility on petrol and diesel to document excessive to shore up income collections final 12 months, mentioned the curiosity on oil bonds paid within the final seven years totalled Rs 70,195.72 crore.
Excise responsibility on petrol was hiked from Rs 19.98 per litre to Rs 32.9 final 12 months to recoup achieve arising from worldwide oil costs plunging to multi-year low as pandemic gulped demand. Excise assortment in pre-pandemic 2018-19 was Rs 2.13 lakh crore.
With PTI inputs
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