THE reduction at long last in excise duty on petrol and diesel by Rs 5 and Rs 10, respectively, by the Centre and the subsequent additional tax cuts at its prodding mainly by BJP-ruled states and some UTs, including Chandigarh, bring some much-needed relief. As the spiralling prices crossed the psychological barrier of Rs 100 per litre, a figure unthinkable till not so long ago, the huge impact on earnings and the rise in prices of essential items were compounded by the nonchalant attitude of the Union government over the daily hike during the past several months. The justification that the country had to bear the burden for the free Covid-19 vaccination programme and welfare commitments could only be termed a poor attempt to put a cloak over continuing with an ill-advised policy.
The cascade effect on household budgets has been too much to bear for far too many. Whatever prompted the announcement, be it the setback in the October 30 bypolls where price rise emerged as a key issue or as a sop going into the crucial Assembly elections next year, there has been undue delay. The last such surge during the UPA-II years was on account of a sharp rise in international crude prices, but even then, effective intervention ensured a check on retail prices. There is apprehension, and not without reason, of no immediate impact on the ground, since manufacturers or traders seldom reduce prices of essential items after an increase, unless the government comes down heavily.
The country’s dependence on energy import does make it vulnerable to volatility in the international market. Reducing the import bill by shifting to renewables is a long-term project; high Central and state taxation is the issue at hand. The Diwali-eve reduction rolled back a part of the
Rs 13-16 per litre increase in taxes effected between March and May last year. That, incidentally, was done to avoid passing on to consumers the benefit of the sharp fall in international oil prices. The people deserve better, especially by a government that professes to be their ‘sewak’.
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