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Arun Jaitley hints at no cut in excise on oil, asks citizens to pay taxes honestly

June 18, 2018 6:59 pm Category: BATH CHEETH, SLIDER NEWS A+ / A-

In a Facebook post, Arun Jaitley said in last four years, central government’s tax-GDP ratio has improved from 10 percent to 11.5 percent.
Almost half of this, 0.72 percent of GDP, accounts for an increase in non-oil tax-GDP ratio.

Arun JaitleyNEW DELHI: Union Minister Arun Jaitley on Monday urged citizens to pay their due share of taxes
“honestly” to reduce dependence on oil as a revenue source, and virtually ruled out any cut in excise
duty on petrol and diesel saying it could prove to be counter-productive.
While salaried class pay their due share of taxes, Jaitley said “most other sections” have to improve
their tax payment record, which is keeping India “far from being a tax-compliant society”.
“My earnest appeal, therefore, to political leaders and opinion makers …would be that evasion in the
non-oil tax category must be stopped and, if people pay their taxes honestly, the high dependence on
oil products for taxation eventually comes down. In the medium and long run, upsetting the fiscal maths
can prove counter-productive,” Jaitley said.
In a Facebook post titled ‘The Economy and the Markets Reward Structural Reforms and Fiscal Prudence’,
Jaitley said in last four years, central government’s tax-GDP ratio has improved from 10 percent to
11.5 percent. Almost half of this, 0.72 percent of GDP, accounts for an increase in non-oil tax-GDP
ratio.
The level of non-oil taxes to GDP at 9.8 percent in 2017-18 is the highest since 2007-08 – a year in
which our revenue position was boosted by buoyant international environment, he said.
“This government has established a very strong reputation for fiscal prudence and macro-economically
responsible behaviour. We know what happened during the Taper Tantrum of 2013. Fiscal indiscipline can
lead to borrowing more and obviously increase the cost of debt.
“Reliefs to consumers can only be given by a fiscally responsible and a financially sound central
government, and the states which are earning extra due to abnormal increase in oil prices,” Jaitley
said.
In an apparent dig at senior Congress leader P Chidambaram’s remark that tax on oil should be cut by Rs
25 per litre, Jaitley retorted “this is a ‘trap’ suggestion”.
Without naming Chidambaram, Jaitley noted that the “distinguished predecessor” had “never endeavoured
to do so himself.”
“It is intended to push India into an unmanageable debt – something which the UPA government left as
its legacy. We must remember that the economy and the markets reward structural reforms, fiscal
prudence, and macro-economic stability.
“They punish fiscal indiscipline and irresponsibility. The transformation from UPA’s “policy paralysis”
to the NDA’s “fastest growing economy” conclusively demonstrates this. The government is aspiring to
improve the tax-GDP ratio,” Jaitley said.
Chidambaram had last week claimed that it was possible for the centre to cut tax by up to Rs 25 per
litre on petrol prices but the Modi-government will not do so.
As per government estimates, every rupee cut in excise duty on petrol and diesel will result in a
revenue loss of about Rs 13,000 crore.
The price of Indian basket of crude surged from $66 a barrel in April to around $74 currently.
Jaitley said despite higher compliances in new system, as far as the non-oil taxes are concerned, India
is still far from being a tax complaint society.
“Salaried employees is one category of tax compliant assessees. Most other sections still have to
improve their track record. The effort for next few years has to be to replicate the last four years
and improve India’s tax to GDP ratio by another 1.5 percent.
“The increase must come from the non-oil segment since there is scope for improvement,” he said.

These additions, Jaitley said, have to come by more and more people performing their patriotic duty of
paying the non-oil taxes to the State.
“The tragedy of the honest taxpayer is that he not only pays his own share of taxes but also has to
compensate for the evader,” he said.

Jaitley said the central government collects taxes in the form of income tax, its own share of GST and
the customs duty. 42 percent of the central government taxes are shared with the states.
State governments collect their 50 percent from GST besides their local taxes. These are independent
of taxes on petroleum products. The states charge ad valorem taxes on oil. If oil prices go up, states
earn more, he said.

Arun Jaitley hints at no cut in excise on oil, asks citizens to pay taxes honestly Reviewed by on . In a Facebook post, Arun Jaitley said in last four years, central government's tax-GDP ratio has improved from 10 percent to 11.5 percent. Almost half of this, In a Facebook post, Arun Jaitley said in last four years, central government's tax-GDP ratio has improved from 10 percent to 11.5 percent. Almost half of this, Rating: 0
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