[NomadSK]

Originally Posted by RM Motorsports

Where is all the difference going ?

On a buying spree of defense toys, thanks to our trustworthy neighbors on either side.

[romeomidhun]

Originally Posted by NomadSK

On a buying spree of defense toys, thanks to our trustworthy neighbors on either side.

In 2014, government subsidy for petroleum products was around rs 65000 crore.

In 2023, central govt itself has earned around rs 5 lakh crore from petroleum products. (India's petroleum consumption is 114.3 million tonne in first half of 2023-24. That is almost 22 thousand crore litre per year. Multiply it by Rs 25 as central tax, and that is more than 5 lakh crore per year). At an avg 2 lakh crore per year, it is 20 lakh crore for 10 years.

Is this much amount used for buying defense products? If not, is it spent for common people? Are you seeing any such improvement in the quality of life of common people? If none of such things happen, sell petrol for what it will cost. Not for profit.

As per a recent study, average per head debt is increased from Rs 35 K to Rs 65 K during the last 10 years.

Rich became richer. We poor people continue to pay exorbitant tax on petroleum products. And I don't think this will change any time soon - whether the "builders" or even the "anti-builders" are coming to power.

[longhorn]

As if the legalized loot that was already in place was not sufficient, ethanol blending was introduced for petrol. We all know that ethanol is way cheaper compared to petrol. No prizes for guessing where the difference amount vis a vis pure petrol went, definitely not to the pockets of consumers. Even if EV's go mainstream, demand for fuel will not die overnight. We still have to tank up existing ICE cars. So it would be a gradual decline in windfall income stretched over many years.

[m8002?]

As usual, we can expect the powers that be reduce the prices just before the MH elections.

https://www.rediff.com/business/repo...s/20240912.htm

The best part of the article is this

While the OMCs have pricing freedom, they have since late 2021 not revised prices in line with cost.

[IamNikhil]

Originally Posted by m8002?

As usual, we can expect the powers that be reduce the prices just before the MH elections.

Yes, definitely expecting states which are poll-bound to effect atleast a marginal cut in fuel prices. This has become a trend lately.

[Chrome6Boy]

The government has removed subsidies for EV cars while earning a lot of money from fossil fuels.

If anything they should have spent at least the same amount of subsidy in order to promote EVs as an alternative for the lower middle class families which will face the brunt of the fuel prices, especially once these two wars are over.

[ASP007]

Originally Posted by NomadSK

On a buying spree of defense toys, thanks to our trustworthy neighbors on either side.

We spend only 2-3% of GDP towards defence expenditures.

On topic:

When the crude oil prices soar, they increases the petrol prices citing the dynamic fuel pricing in place. When it is the other way around, prices will remain constant until the ministry announces some cut.

[DonHyd]

I am not very well informed but will not the annual budget or any other similar document include every rupee earned and spent by the government in a financial year? It should also include how much money has been earned from fuel and where that has gone. I think salaries, pensions and debt servicing are the major expenses of the government which are unavoidable. And those expenses increase every year. So government cannot take the risk and lose revenue. India is still a predominantly poor country and a few sections of society have to bear the burden of a large number of people. An unfortunate but inevitable truth.

[pandabear]

I guess we are a developing nation. Still no matter how the narrative goes we still pay less taxes as a society than other countries. Unfortunately only the salaried class lifts the burden of paying income tax. This causes the heartburn and the irritation towards any money the government earns.

Unless the money is spent on social welfare and toward the poor we would be walking the path towards a civil war or a crime ridden society.

I guess we can all take a haircut on taxes (including fuel) and still live a safe life with minimal crime says that money is well spent.


I would say the best is to just abolish the income tax and compensate the shortfall in collection through other means. This would clearly eliminate the current injustice towards the salaried tax paying folks.

Meanwhile we just have to chin up and move on.

[shankar.balan]

Today’s price paid for a full tank of XP95.
Petrol is expensive for sure.
On the points earlier raised on taxes.
It would be good if the government removes income tax and levies a consumption tax on everything one buys, eats, drinks, etc.
This way the whole tax net becomes incredibly huge and the Govt will net a lot more income for itself from a much larger swathe of people, especially those who are presently evading taxes by one means or another.

[aayusht]

Originally Posted by shankar.balan

It would be good if the government removes income tax and levies a consumption tax on everything one buys, eats, drinks, etc.

While I agree that this would widen the tax net (indirect tax collection), the government cannot let go of the cash cow (Direct tax collection - esp. TDS).
Another point to consider - if the government decides to remove direct tax collection, the burden would shift to indirect tax sources i.e. prices of goods & services would go up - impacting the ones who are less fortunate than us (read vote bank) - leading to financial strain on them and then protests on streets.

[xway]

For folks thinking that people not paying Income tax are not paying taxes are grossly wrong.

80 Crore people getting free ration which means earning less than 1lacs/year (differs a little) which is more than 60% of total and 80% of adult population barring infants and old.
How will they pay income tax ?

Not to mention they too pay huge GST between 5 to 28% on oil, soap, electricals, phone connection and 200% taxes on petrol if at all.

Only people not taxed are politicians, big businesses, agriculture income but this population is very limited.

Admit it that the government is greedy to the extent that people have to cut on education, health, retirement, insurance to pay for these heavy taxes.

[Amey Kulkarni]

Originally Posted by RM Motorsports

Where is all the difference going ?

It’s pretty evident where the money is going. Whereas for UAE, it’s back to 2021 prices standing at -

AED 2.79 ~ INR 63.72 per Ltr for 95 Octane
AED 2.90 ~ INR 66.23 per Ltr for 98 Octane.

Cheers,
Amey

[Turbohead]

Originally Posted by pandabear

Meanwhile we just have to chin up and move on.

Can you tell me to which category does revenue generated from fuel taxes go to in the given picture?

[thanixravindran]

Originally Posted by Turbohead

Can you tell me to which category does revenue generated from fuel taxes go to in the given picture?

I guess central taxes on fuel is excise duty and goes under excise duty head. Not sure whether centre levies any excise duty on alochol.