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The finance minister alleged that the Centre had imposed cess to avoid devolution with states, which is “against the characteristics of federalism”. IN A bid to provide relief to the common man, the West Bengal government on Sunday announced a reduction of tax by Re 1 per litre on petrol and diesel effective from midnight.
State Finance Minister Amit Mitra, during a virtual news conference, said the move would provide some respite to people who are affected by the rising prices of fuel.
“The Centre earns Rs 32.90 per litre in taxes from petrol, while the state gets Rs 18.46 only. In case of diesel, the central government’s earning is Rs 31.80 per litre as against Rs 12.77 for the state. Therefore, we have decided to reduce state tax by Rs 1 to provide relief to the people,” said Mitra.
The finance minister alleged that the Centre had imposed cess to avoid devolution with states, which is “against the characteristics of federalism”. Mitra added that the Centre should reintroduce the planning commission.