West Bengal govt to reduce tax on petrol and diesel by Re 1 per litre from midnight on 22 Feb
State finance minister Amit Mitra said the move will provide respite to those stung by fuel prices and alleged that the Centre had imposed cess to avoid devolution with states
Kolkata: The West Bengal government on Sunday announced a reduction of tax by Re 1 per litre on petrol and diesel effective from midnight of 22 February.
State finance minister Amit Mitra said the move will provide some respite to people stung by burgeoning prices of fuel.
"The Centre earned Rs 32.90 per litre in taxes from petrol (on 20 February), while the state got around Rs 18.46 only. In case of diesel, the Central government's earning was Rs 31.80 per litre as against about Rs 12.77 for the state," Mitra said.
He also alleged that the Centre had imposed cess to avoid devolution with states, which is "against the characteristics of federalism".
To a question, Mitra said the Union government should reintroduce the planning commission.
Later, in a tweet, the minister said the tax rebate on fuel will be valid till 30 June.
"To reduce the common man's burden, the state government has decided to allow rebate of Re 1 per litre on sales tax payable on sales of petrol and diesel w.e.f. the end of midnight of 22nd February, 2021 till 30th day of June, 2021," Mitra said.
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In Delhi, petrol and diesel prices witnessed a hike of 35 paise per litre each. Petrol now costs Rs 90.93 a litre while diesel is selling at Rs 81.32 per litre in Delhi
The petrol price touched nearly Rs 100 in Bhopal, with a litre being sold at Rs 99.21. While diesel costs Rs 89.76
Centre can cut excise duty on petrol, diesel by Rs 8.5 a litre without hurting revenues, say experts
Central and state taxes make up for 60 percent of the retail selling price of petrol, available at Rs 91.17 per litre in Delhi and over 54 percent of diesel which is available for Rs 81.47 in the National Capital