Congress on Fuel Price: Amidst rising prices of petrol, diesel and gas, the central government cut fuel prices from last night. After this the opposition is continuously attacking the government. In the latest case, former Finance Minister P. Chidambaram, while targeting the government for cutting fuel prices, has said that on this decision of the government, the saying like ditch in front and back is true. Keeping his point on the social media platform Twitter, he said that the notification of reduction in the prices of petrol and diesel is now available. Chidambaram said that the Finance Minister has used the term excise duty but these deductions have been made in the additional excise duty which is not shared with the states.
P. Chidambaram, who was the Finance Minister in the UPA government, attacked the central government by tweeting one after the other. He said that the state governments are getting very little revenue as part of the duty on petrol and diesel. The revenue of the states is from the VAT levied on petrol and diesel. Chidambaram has said this in the context in which the PM Narendra Modi
The notification on reduction of duty on Petrol and Diesel is now available
FM used the words ‘Excise Duty’, but the reduction is in Additional Excise Duty which is not shared with the states
— P. Chidambaram (@PChidambaram_IN) May 22, 2022
Chidambaram said the real cut would be when the central government reduces the cess on petrol and diesel which is not shared with the states. Chidambaram asked whether the Center can afford to give up that revenue. He had also tweeted yesterday that when the central government cuts the excise duty by Re 1 then the share of 41 paise in that rupee goes to the states. That is to say, for 1 rupee, the center filled 59 paise from its pocket while 41 paise was filled from the states. Chidambaram had also said yesterday that in two months the Center increases by Rs 10 per liter and then cuts it by Rs 9.50. In a way, it was equivalent to robbing.