Govt. should impose higher duty on petrol to boost finances?

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ANKITSHAH
Posts: 52
Joined: Fri Nov 14, 2014 5:59 pm

Re: Govt. should impose higher duty on petrol to boost finan

#1 Postby ANKITSHAH » Tue Nov 25, 2014 1:09 pm

In the last few months, we have seen that the fuel pricing are decreasing. This implies that the Government of India is increasing the subsidies on fuel. The step by the NAMO government is highly appreciated by Indians. Now if we talk of higher duty on petrol, that would lead to increase in their prices. It is true that the revenue of government will increase but then this will ultimately increase the inflation in the country. The cost of all the items is directly dependent on the transportation cost Hence the finance Ministry shall also be concerned about the repercussions of the step.

Thus I believe that the GoI should not increase the price of petrol.

ashish14siom
Posts: 13
Joined: Thu Nov 13, 2014 7:36 pm

Re: Govt. should impose higher duty on petrol to boost finan

#2 Postby ashish14siom » Mon Nov 24, 2014 12:04 am

Imposing higher duty is not the only option to boost finances. Since a slight change in petrol prices changes the dynamics of economic environment in a big way. Its so much interrelated with other commodities and hence very sensitive.Hence, As long as we have other options its better not to impose higher duty on petrol.

gBhoir
Posts: 21
Joined: Tue Nov 11, 2014 8:47 pm

Re: Govt. should impose higher duty on petrol to boost finan

#3 Postby gBhoir » Sun Nov 23, 2014 10:00 pm

If govt impose higher duty on petrol then it will increase the govt. faltering tax collections. It increases revenue of government. So the government can spend that money in improvement of health, labor, defense service, agriculture sector.

nitis
Posts: 56
Joined: Thu Nov 13, 2014 2:27 pm

Re: Govt. should impose higher duty on petrol to boost finan

#4 Postby nitis » Fri Nov 21, 2014 12:50 pm

Petrol price in Delhi is Rs. 67.35 per liter. Over the past few years, petrol price have hiked from Rs. 40 to 67.35 .Well each and everyday we hear on the news, government hiking the prices of petrol and diesel.This is almost 50% increase in the petrol price over last 2-3 years. Common man is finding this very disturbing, as it is upsetting their household budget.Well everybody knows that the government takes these kind of decisions each and everyday with the fluctuations in price of the crude oil.

Petrol is a very crucial component for the growth of any nation and India being a developing nation requires huge amount of petrol for fueling the growth of the country.But in past few years,petrol has become a headache for many people and industries. There have been a continuous increase in the price of petrol in India.This is not at all good for the country and people.A higher duty on petrol has been continuously imposed on petrol by the government due to which the common man is suffering.Lets assume that the price of petrol is Rs 66.21 and if the government reduces the taxes due to which the petrol price come down to Rs 55 per litre. But Revenue from crude oil is the largest revenue source for the government. If they cut it down, then from where they will have money for the expenditure, like election and parties.So government is always under pressure on issues of price of petrol, but it has to impose duties on the price so as to have revenue in store for future expenses.

amolss3
Posts: 43
Joined: Fri Nov 14, 2014 6:23 pm

Re: Govt. should impose higher duty on petrol to boost finan

#5 Postby amolss3 » Wed Nov 19, 2014 8:50 pm

In India the Total government expenditure is divided into two parts - development and non-development spending. Development spending is further sub-divided into spending on economic and social services. Social services include spending on health, labour and other community services, while that of economic services include sectors like industry, trade, transportation and agriculture. Non-development spending includes administrative services, defence services and pension etc.
Presently, India’s current account is mostly in deficit. This means that total imports of our country are greater than total exports. On the other hand, the govt gets its revenue from taxes (VAT+duty). The revenue of the govt has three components namely tax & non tax revenue and capital receipts. The govt earns non tax revenue by things like royalty from selling petroleum products. Therefore, because of huge expenditure and greater imports, govt should impose higher duty on petrol to boost finances.

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Shivani
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Govt. should impose higher duty on petrol to boost finances?

#6 Postby Shivani » Thu Nov 13, 2014 10:05 am

Since Modi Govt. came into power the petrol prices are declining every month...should government impose higher duty on petrol to boost finances ?


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