As prices of petrol and diesel are on a historical high in Madhya Pradesh in the last few weeks, these commodities have swelled the state exchequer’s kitty by around 98% and 51%, respectively.
Finance Minister Jagdish Devda on Tuesday informed the assembly in a detailed reply to a query from Congress MLA Mevaram Jatav. The minister, however, claimed that it was all due to the tax structure inherited from the Kamal Nath government and they did not make any revision.
This led to disruption in the assembly proceedings as Congress MLAs stepped into the Well raising slogans against the Shivraj Chouhan government over the price hike.
The speaker even had to adjourn the Question Hour in the melee.
Earlier during Question Hour, the Congress MLA had posed a query on comparative details on proceeds from levies applied on fuel and liquor and also how much extra burden the BJP government had put on the public through fresh taxes and levies.
The state earned Rs 519.68 crore, Rs 920 crore and Rs 107.93 crore from petrol, diesel and liquor respectively by June in FY 2020-21 while till June 2021-22 the state has drawn Rs 1033.76 crore, 1395.76 crore and Rs 151.68 crore respectively on these items through VAT, replied the minister.
This has led to an aggregate rise of revenues up to 98.92%, 51.68% and 40.54% in the comparative period, said the reply. To add, the liquor contracts this year have been renewed with a 10% hike in the state this financial year.
Replying to another portion of the question, the Finance Minister made it clear that the BJP government levied no fresh taxes and it was the taxes and levies inherited by them from the Kamal Nath government.
“We had lowered VAT on petrol from 31 to 28% but Nath government revised it to 33%, we had lowered VAT of diesel from 27% to 18% but the Nath government hiked it to 23%,” quipped Devda.
In a state like Rajasthan, the taxes are quite high, said the minister.
An upset Nath stood up and claimed that things of his government should not be discussed and asked whether the state government was planning any price cut as various sections were burdened by the price hike. Then, the Congress MLAs stood up stepping into the Well and began sloganeering against the Shivraj government over inflation.
Soon after, Speaker Girish Gautam adjourned the House till noon.
Taxes on fuel
Presently, petrol draws 33% VAT, Rs 4.5 per litre additional tax and 1% cess on turnover while diesel attracts 23% VAT, Rs 3 a litre additional tax and 1% cess, claimed the minister. Cooking gas has a VAT of 5% while liquor attracts a VAT of 10% and 18% VAT on liquor sold at bars and restaurants. Seeing the financial requirements of the state, there is no question of lowering these levies, said the written reply from the minister.
Petrol, diesel prices in Bhopal
Petrol prices have crossed Rs 100 a litre mark in many cities in MP long back and on Tuesday the fuel sold at Rs 110.2 per litre in Bhopal. Diesel has also crossed the century mark in different districts and on Tuesday it sold at Rs 98.61 per litre in the state capital.
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