Govt move to put Oil cess on Income Tax EDIT: Wrong news

[finneyp]

I oppose this move, why should the Salaried class only face the brunt of high fuel prices?

Better to levy it on usage basis, i.e. if you want to use your vehicle, you pay!

This will:
1. Discourage people to use Cars regularly, like commuting to office by car.
2. Encourage people to do Car pool, use public transport, use 2-wheelers etc.

[CrAzY dRiVeR]

Salaried class is the easiest to keep account of. So, every govt is going after them. This is not just confined to cess on fuel prices!

Originally Posted by finneyp

Better to levy it on usage basis, i.e. if you want to use your vehicle, you pay!

How to keep check of how much a person uses his car?

[finneyp]

Originally Posted by CrAzY dRiVeR

How to keep check of how much a person uses his car?

I meant if you wanna drive your vehicle, you pay the relevant fuel price at the bunk!

[ntomer]

So after gifting Rs. 48,400/- to tax-payers, FM is planning to get some of that back...

And all this because finance ministry is not ready to lower the excise duty on fuel import :-(

Diesel is sold 7 times more than Petrol. And thus a hike of Re. 1 per lt of diesel will being moolah equivalent to Rs. 7 hike in petrol. But diesel prices won't be hiked otherwise left will get a fit.

In addition to trucks, buses and tractors; a lot of passenger cars also run of diesel. Why should they get the benefit of subsidy while the petrol-car folks will pay through their nose.

There is also considerable subsidy at domestic LPG and kerosene. Which are used by umteen people to run cars, in restaurants, for generators etc. And they also get the benefit of subsidy.

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[CrAzY dRiVeR]

Originally Posted by finneyp

I meant if you wanna drive your vehicle, you pay the relevant fuel price at the bunk!

Yes. The problem with the government policies is that, business and the likes who do not have a fixed pay slip get away with it without as much burden.

[diabloo]

No cess on I-T to fund fuel subsidy: FinMin

"Attention of the ministry of finance has been drawn to the reports appearing in a section of media following a routine meeting between the minister of petroleum and natural gas and the finance minister. The reports are largely speculative and in particular, reports about certain new tax proposals are totally baseless," an official statement said.

[srishiva]

Originally Posted by diabloo

No cess on I-T to fund fuel subsidy: FinMin

How much would a cess on IT bring the government anyway ? The best way is to raise the prices. Does anyone think used petrol car prices might go down if this continues to happen ?

[simran]

definitely, and the re-sale of diesel veh will go up. Swift and Dezire will have longer wait-lists now.

[shankar.balan]

they are mulling this but in the election year Im not sure if the centre with its notorious populist tendencies will have the b***s to do it!
the proposal mooted and indeed covered briefly in todays TOI Bangalore is that they reduce the import duties a bit and the excise duties a bit rather than burden the income tax payer.
after all, the maximum consumption of fuel (say in New Delhi) is probably by the businessmen, "farmers" and rich politicians who anyway under declare their incomes!
So ultimately the poor salaried classes as usual will bear the brunt in case this income tax cess comes in.
However, we have a little hope, this being election year...

[redfire]

Give as much subsidy as Govt. can and reduce the excise duty. Then hike the price. Totally agains I.T cess as I.T is paid by less number of people, while most of the black money holders (who do not pay I.T) will enjoy the result while they own expensive cars and consume more fuel.

[LLL]

Fin Ministry has rubbished these reports.

Finance ministry denies reports of tax levy for oil companies- Policy-Economy-News-The Economic Times

[ajay99]

This is not correct.
Fuel prices especially PETROL prices should be hiked by at least Rs.15/-.
Also another revenue yielding method is to put a LUXURY tax on all vehicles and items of personal use costing more than a million(Rs.10lakhs)
This sort of taxation( road tax) is already in vogue in KERALA where the road tax of a car costing 20 lakhs is Rs.120000/- and this is yielding good revenue

[iraghava]

Originally Posted by ajay99

This is not correct.
Fuel prices especially PETROL prices should be hiked by at least Rs.15/-.

Next year we have the general elections, no govt. in India has the ***** to impose a 40% rate hike on fuel, it would be a suicidal move. Congress anyways already has their legs dangling in the grave & doing something like this would mean they would be thrown in & buried in it earlier than they can imagine.

At most they'll do a 4-5 rupee increase & when Left/Public cry hoarse will roll it back by a rupee or two. Net result, everyone's happy.

Originally Posted by ajay99

Also another revenue yielding method is to put a LUXURY tax on all vehicles and items of personal use costing more than a million(Rs.10lakhs)
This sort of taxation( road tax) is already in vogue in KERALA where the road tax of a car costing 20 lakhs is Rs.120000/- and this is yielding good revenue

Do you see any good coming out of this extra tax except filling Govt. coffers for it be siphoned off by our Ministers & Bureaucrats? I mean ever since they started collecting this tax have Kerala's roads & infrastructure improved so much that it can today be called world-class & compared to a country like Germany for instance?

If my trip last year was any indication I don't think that is the case & all the extra tax being collected is being utilised for others uses than what it was collected for.

And anyway we already pay around 50% of a car's cost as taxes to the Central & State Governments, do you want us to pay even more?

[mjothi]

Moral of the story - Never be Honest. This is what our govt says.

When the farmer loans was waived off, imagine about the "honest" farmer who took all the pain to close is loan promptly. Now after the waiver he looks so stupid and do you think he will ever do it again? Or in other words why should he?

I also remember that govt was trying to give non-subsidized LPG for Income tax payers. But luckily, it did not went through.

Again, I feel govt is not attacking the root cause and what to say "Thalaya vittutu vaala pidikira kadai than". If the petrol price is increased, then for sure the usage will come down since we will feel the pinch and will contribute to the country. But on the other hand if it is you collect more money through different heading, how many will even think or know that they are paying for the oil?

OT: I am not sure how many "honest" tax payers are here. Most (if not all) of the tax payers are calling themselves honest because they have no option to do other wise. Govt takes its portion and gives you after tax money. So, where is the point of honest in here.

[hydrashok]

Originally Posted by iraghava

Next year we have the general elections, no govt. in India has the ***** to impose a 40% rate hike on fuel, it would be a suicidal move. Congress anyways already has their legs dangling in the grave & doing something like this would mean they would be thrown in & buried in it earlier than they can imagine.

At most they'll do a 4-5 rupee increase & when Left/Public cry hoarse will roll it back by a rupee or two. Net result, everyone's happy.

Exactly my thoughts too. We'll have a small price-rise and then a nation-wide strike or two a week later, and lo, the increase in prices will have halved.

Now this is a bit below-the-belt, but I think it is high time non-commercial users of diesel (= private cars, and other diesel vehicles registered as private vehicles, sporting white plates) started sharing the "burden" of the government a bit, in terms of different pricing for diesel fuel.