Depends on the Modi supporter. In particular I have always supported high petrol prices due to environmental, congestion and import balance reasons.
High fuel prices can be justified only if the services you've mentioned in your answer are worth paying for. Roads in our country sucks, public schools worthless, government officials incapable, government hospitals are sixth grade, not a single government service is worth of this price hike. Government want our money just to lure the uneducated voters. Period.
Immediate wealth tax is needed for 1 time, wealth of rich have soared during the pandemic, they should be made to pay for these unprecedented times, after all their growth is dependent on the middle class and poor people, specially the FMCG sector, even the poorest of poor consume a 5 Rs Parle Biscuit. It’s very hard to tax the rich or businessmen. Most of them will operate companies or will make sure their organisation tax structure is such that it avoids tax as much as possible. So this leaves the salaried class to bear a bigger margin of the tax. We already pay 35–40% of our income in IT. I sure don’t want to pay more. Petroleum fuel is a necessary evil until we have an affordable & reliable alternate to it, but that shouldn’t be used as a tool to milk an ordinary citizen. consumer goods ( due to high transportation costs) in Covid times when the spending capacity of the middle class is hit, these price hikes would further reduce consumer spending, increase costs of growing crops and slow the process of economic recovery. Hiking taxes in fuel is just a very simple short term measure, which would hurt all sections of the society.
Plus this Rise in fuel prices is not going to do anything good for the environment as public transport is risky these days and electric cars are not so widespread, so people would continue using their cars, trucks.
Also from 50 years the govt has been treating fuel and liquor as its main cash cows, almost in every budget tarrif rates on these goods are hiked, why can't the govt find more ways of raising money and widen the tax base as less than 4% of the population pays income tax.
I am also surprised seeing the reaction of the public now, when fuel prices were hiked in 2012 under congress. Then the middle class, even bollywood protested and spoke against the govt. But now the reaction is muted, even though the rates of the hike is higher. This puzzles me.If government is so concerned to control pollution & congestion, through high fuel prices, then it has to provide an alternative mass mode of transport that is cheaper, widespread, effective, and with adequate infrastructure to make it available for its citizens.
Until then please don’t ask us now to leave our cars/ bikes and board the already crowded buses and locals, risking our lives.
Public transport in America is bad, but that doesn’t affect its citizens since cars and gas are very affordable there. On another hand, many countries in Europe hardly rarely use their personal vehicle as public transport is accessible, comfortable, & reliable.
If a sitting PM can’t tackle a simple problem like this for the common man, then on what grounds did he ridiculed the previous govt on the same issue.
We have had enough of these jumlas, jibes by the PM, while inefficient misters are handed over crucial portfolios just to scream “Oh, we can’t do anything, it is the state govt. or the previous govt. fault”. Many private doctors, engineers, land lords, businessmen etc…avoid paying income tax. There are many legal CAs for their rescue. Only 3% of Indians pay income tax! Why governments do not try to tap this intentionally unexplored options? I expected this type of answer from you but you justified government as if government is left with no option other than this to increase its revenue.
Well, then optimize or make necessary changes to this handicap system framework. One day government will increase tax on medicines under the umbrella of this same excuse and you'll be happy that thank god we are making revenues and providing subsidies to dead. Master stroke by modi ji.
An average states makes only 8% from non-tax revenues. They make 46% from the central government and 46% from their taxes. Of the latter 46%, fuel VAT and liquor excise are big components.
Your state’s expenditure — police, road, water, public schools, public colleges, government hospitals, metro trains, irrigation, free power to farmers, subsidised food from the PDS, subsidised power to lower income people, farmer loan waivers — is funded mostly by the GST/fuel VAT along with the central government transfers [which are once again made of GST, excise and income tax]. Whatever party your state is run with is dependent on the fuel taxes.
While the prices of petrol have gone up, the prices of many other commodities have come down over the decade keeping the inflation relatively low at 4%.
India Inflation Rate | 2012-2021 Data | 2022-2023 Forecast | Calendar | Historical
Unless you can prove that Modi is taking money off the taxes to put in his pocket, you have to assume that the taxes that go in come back to you in various ways.
If you have to reduce the taxes on petrol, you have to figure out a way to increase taxes on something else or reduce expenditure on something. What would they be?
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