Even as more and more states are following Centre’s footsteps in announcing cut in fuel prices, Punjab Government has deferred any decision in this regard for Monday.
The high-level meeting of the state’s Finance and Excise-Taxation Department convened by the Chief Minister Capt Amarinder Singh for Friday could not arrive at any decision owing to “absence of some officials”.
Another meeting has now been convened at New Delhi to decide upon any reductions in the prices of petrol and diesel.
For the same, the Chief Minister has directed the Finance and Excise-Taxation departments to make a detailed comparative analysis of fuel prices in Punjab vis-Ã -vis other states.
Soon after the Centre announced Rs 2.50 cut in the prices of both petrol and diesel, coupled with an appeal to all the State Government to make the same move, Chief Minister decided to hold a meeting for the same.
He had asked the state Finance Minister Manpreet Badal to make a presentation on the fuel price issue.
Meanwhile, Manpreet has dubbed the Centre’s “so-called reduction” of Rs 2.50 as its shrewdness which has eventually put the burden on the states.
“In its Rs 2.50 cut, the Centre has announced to reduce excise duty by Rs 1.50 in which 42 percent is the states’ share. As far as Re one reduction by way of absorption by the oil making companies (OMCs) are concerned, it would also burden the states. All OMCs are in profit, and they give 33 percent as income tax, in which the states again has its 42 percent share,” elaborated Manpreet.
He added that by announcing the reduction in fuel prices, the Centre has ultimately burdened the states. “The Rs 2.50 cut was not by the Centre’s kitty. I urge them to reduce additional or special excise duty and give a cut from their own share,” he added.
Manpreet said that any decision on petrol diesel prices would be taken after Monday meeting.
“Many aspects has been discussed during the meeting, along with the consequences it would have on state’s fiscal position,” said an official.
At 35.12 percent, Punjab has among the states having highest VAT (value added tax) on petrol. The current VAT rate on diesel in the state is still higher compared to neighbouring Himachal and Chandigarh.
However, Punjab had reduced the levy from 17.36 to 16.62 percent in 2017-18, making the diesel marginally cheaper in the state compared to Haryana, Rajasthan and Jammu and Kashmir.
Presently, tax on diesel is 16.74 percent, while the rates in Haryana, Himachal Pradesh, Delhi and Chandigarh stand at 26.25 percent, 24.43 percent, 27 percent and 19.74 percent, respectively.
Centre on Thursday reduced the excise duty by Rs 1.50, while Re one would be absorbed by the oil making companies.
After the Centre’s announcement, Uttar Pradesh, Gujarat, Maharashtra, Madhya Pradesh, Chhattisgarh, Tripura, Jharkhand, Assam, Arunachal Pradesh, Himachal Pradesh and Haryana too announced Rs 2.50 per litre cut in fuel prices. Jammu and Kashmir, which is currently under the Governor’s rule, also announced a reduction of Rs 2.50 on fuel prices.
The decision comes days after the northern states of Punjab, Haryana, Himachal, Uttar Pradesh, UT Chandigarh, in its meeting on September 25 agreed to fix uniform tax rates on petroleum products, amid rising fuel prices and cross-border transfer of revenues.