The Government has decided to reduce the diesel and kerosene cess. But is it enough? Should not the taxes itself be cut by anywhere upto 2% considering that the general household and offices spends upto 10% of their income for travel? See http://ideas.repec.org/p/wbk/wbrwps/4395.html
The Government is so soft on critical issues that even countries like Indonesia, Malaysia and Sri Lanka decontrol petro products before India. But the same Government is so hard on its taxpayers that many days after the same Indonesia, Malaysia and Sri Lanka Governments decreases taxes on its citizens (which was not all that great to begin with), Indian Government has not even started thinking on those lines. Considering that more than 50% of what we pay for the petro products go to the State and Central Government coffers (about 20% and 30% respectively), why not give a hefty reduction in taxes? I am speaking "in addition" to the reduced Income Tax rates I mentioned earlier.
Now I answer my own question. The purpose of the fuel tax is to lower dependence on fossil fuels. When all countries are imposing these taxes, we cannot afford to NOT do it. That leaves just 1 option. Cut our income taxes.
Does the Government want the common man (read it as taxpayer) to bleed to death? Is our Government worse than a leech? And why do I not see public comments on this burning issue? Are we so used to these Government excesses that we do not care?!!
Do any of our readers have any information about how the money generated because of the fuel taxes and cesses is being used? I will be grateful to include that statistic in this blog.
