[poloman]

Originally Posted by gsurya

The only way to fix the constant tinkering of taxes on fuel is to bring it under GST. Unfortunately the present Govt has agreed to keep fuel out of GST instead of doing hard bargains & deals to get it done once for all.

Agree with you on this. The GST bill the current form is a total nonsense. Not only fuel other money spinners like tobacco are also excluded.
Having said this I have serious reservations about the GST itself. Remember a decade back VAT was pushed to solve all our problems. Did anything change?

[pgsagar]

Originally Posted by poloman

Agree with you on this. The GST bill the current form is a total nonsense. Not only fuel other money spinners like tobacco are also excluded.
Having said this I have serious reservations about the GST itself. Remember a decade back VAT was pushed to solve all our problems. Did anything change?

VAT, GST or whatever the fancy names. Everything in it is for the Govt. coffers. Nothing for the citizens. Citizens are milch cows to be taxed to death. They have Tax Research Units whose heads burn midnight oil devising new ingenious ways of looting citizens.

[sgiitk]

I am surprised that Grexit has not dampened the markets, as well as the ₹. With a slight softening in Brent, let us hope for some more cuts in a fortnight.

As for GST I am all for it. It will reduce revenue leakages, and (more important) remove the need for multiple warehouses for tax reasons. Also, hopefully it will remove the various artificial barriers of some states. Try and buy something from outside in UP or WB, Amazon and Flipkart refuse!

However, MH still is crying about the totally obsolete Octroi in Mumbai.

[itwasntme]

Just filled up BP diesel at 55.05 in Bangalore. Noted that they manually calculated and billed me as the dispenser machine was still showing the old rate.

Staff mentioned that 'Saab' is yet to reach and re-program the machines.

[gsurya]

Originally Posted by pgsagar

VAT, GST or whatever the fancy names. Everything in it is for the Govt. coffers. Nothing for the citizens. Citizens are milch cows to be taxed to death. They have Tax Research Units whose heads burn midnight oil devising new ingenious ways of looting citizens.

The problem is not the level or type of taxes here, its that tax base is not broad enough and non-salary taxpayers find it too easy to find loopholes & ways to avoid tax.

In the long run we should be prepared to pay between 16 to 25% via VAT/GST on goods & services, but it needs to be on a broader base & efficiently used without leakages.

[sgiitk]

@gsurya; Ethanol, Fuel and tobacco are off the list as it was the only way to get states on-board. So it was considered the lesser evil.

[gsurya]

Originally Posted by sgiitk

@gsurya; Ethanol, Fuel and tobacco are off the list as it was the only way to get states on-board. So it was considered the lesser evil.

As of 2013, the then Govt had managed to convince all but Gujarat & MP on GST. Even during VAT rollout states had demanded many dilutions but Govt stood firm & pushed it through. Thats what should be done, with stick & carrot, instead of diluting this crucial bill.

http://www.livemint.com/Politics/ln3...rent-form.html

[sgiitk]

Here I do not think Modi is a softy. So he got the bast deal available. There is some vague but about these being only temporary measures. You may have seem reports about MH wanting to retain the archaic Octroi for Mumbai.

[sandsun7]

After being in the 63-66$ per barrel range since a month or so, Brent crude has slipped almost 10% to 56-57$ range now. With rupee-dollar exchange rate being stable at 63.5 range, let us wait and see how the OMCs play around the prices this July 15th.





Source of images: bloomberg.com, and xe.com

[Mohan Mathew A]

Originally Posted by sandsun7

After being in the 63-66$ per barrel range since a month or so, Brent crude has slipped almost 10% to 56-57$ range now. With rupee-dollar exchange rate being stable at 63.5 range, let us wait and see how the OMCs play around the prices this July 15th.

That is more than 10% drop in crude price so ideally there should be a significant cut (atleast INR 5) but i am sure nothing of that sort is going to happen, we should be considered lucky if they drop it by INR 2. At the cost of being repetitive, the OMCs are really a law unto themselves.

[SunnyBoi]

Originally Posted by Mohan Mathew A

That is more than 10% drop in crude price so ideally there should be a significant cut (atleast INR 5) but i am sure nothing of that sort is going to happen, we should be considered lucky if they drop it by INR 2. At the cost of being repetitive, the OMCs are really a law unto themselves.

Price cut will actually be 1 rupee or less. OMCs will come up with another stupid argument not to reduce prices.

[romeomidhun]

From our past experience of one year, even with this kind of low crude oil prices, we can keep on dreaming of the Acha din forever and ever...

[JD1]

"We buy in advance so have bought when prices were high so cannot cut retail prices" - looks like we are getting ready to hear this for one more time.

[vasudeva]

Most would know that prices are revised on 1st and 15th. The last was on 1-7-15 based on crude oil prices for fortnight 12-6-15 to 26-6-15. The price then was Rs. 3935.76/barrel. The price on 15th July 2015 will be announced on crude oil for fortnight 27-6-15 to 10-6-15. The price for this is Rs. 3747.99/barrel till 9-7-15. This is a 4.77% reduction. So expect some reduction in prices on 15-7-15.

[Rodie09]

When fuel prices were headed south, govt had at least twice raised the excise and not passed the benefit. Mr. Jaitley's argument was that this will serve as a cushion when the prices start to go up and will save junta from price shock. Going by this logic it should have worked as per LIFO - Last In First Out.

However, that excise hike has been sitting pretty there for some time while mango people are getting the jolts. Now, this was a predictable behaviour from government, what baffles me is :

1) No political uproar against this, even when opposition is looking for issues day & night. Highly suspicious.
2) No noise in the media too against this blatant lie. Is this some kind of Nexus.

At the end I wonder, why do the OMCs even bother to explain why they did something...is anyone questioning them or even qualified to do so?