Yogi Adityanath government imposes cess on excise duty for cow shelters

Under the new policy for financing the construction and running of cow shelters, the state government has imposed a 2% cess on excise duty, apart from 0.5% cess on state-operated tolls

Latest News: Facing flak over stray cattle damaging crops and causing road accidents, the Yogi Adityanath government on Tuesday announced a new policy for temporary cow shelters in the urban and rural areas of Uttar Pradesh.

Following a ban on illegal cattle trade and abattoirs after the Adityanath government came to power in March 2017, the number of stray cattle has multiplied in UP. These abandoned animals not only cause extensive damage to crops but road accidents as well, which have claimed lives and injured many. Recently, hundreds of stray cows were locked inside a government school in Aligarh district by irate farmers, who claimed these animals were destroying their crops.

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Now under the new policy for financing the construction and running of cow shelters, the state government has imposed a 2% cess on excise duty, apart from 0.5% cess on state-operated tolls.Meanwhile, the 1% levy on the tax revenue of the UP agricultural marketing board or Mandi Parishad, which goes to the state panchayat bodies, has also been hiked to 2% for mopping up more financial resources towards the proposed cow shelter infrastructure.

Besides, 8 state public sector undertakings, including Setu Nigam (Bridge Corporation) and UP State Industrial Development Corporation (UPSIDC) will contribute 0.5% towards the cow shelter scheme from their Corporate Social Responsibility (CSR) kitty. These decisions were taken at a cabinet meeting chaired by chief minister Adityanath….

Maharashtra may cut VAT on petrol, diesel, suffer Rs 2,600 cr revenue loss

BJP-ruled Maharashtra levies 46.52 per cent VAT (47.64 per cent in Mumbai) on petrol, the highest in the country

After Gujarat, the Maharashtra government may opt for a Rs 2 per litre cut in value-added tax (VAT) on petrol and diesel, adding to the losses of the debt-ridden state.

BJP-ruled Maharashtra levies 46.52 per cent VAT (47.64 per cent in Mumbai) on petrol, the highest in the country. Moreover, a surcharge of Rs 11 per litre and Rs 2 per litre is already collected on petrol and diesel, besides the VAT.

After the implementation of the goods and services tax (GST), several states have increased the value-added tax, leading to a rise in fuel prices.

VAT cut impact on Maharashtra

The move will not only hit Maharashtra’s exchequer but also lead to a revenue loss of Rs 2,600 crore, reported Indian Express.

Farm loans: The cost of waiving farm loans will shoot Maharashtra’s debt stocks to Rs 4.13 lakh crore in FY17, the report added. Therefore, the cut will further aggravate the state’s burden to revive economy.

Gujarat becomes the first state to cut VAT

Gujarat, which currently levies 28.96 per cent VAT on petrol and diesel, became the first state to cut VAT.

ALSO READ: Gujarat first state to slash VAT on fuel prices

Most BJP-ruled are likely to follow Centre’s move, even though Devendra Fadnavis government had earlier rejected Centre’s suggestion for the same. Even Madhya Pradesh, which levies 38.79 per cent VAT on the fuel, indicated considering the option. However, non-BJP ruled states like Kerala and Odisha opposed against lowering of taxes.

Govt cuts excise duty on petrol, petrol

For the first time since Narendra Modi came to power in 2014, the NDA government cut excise duty on petrol and diesel by Rs 2 per litre to cushion the impact of rising international crude prices. The Centre took a hit of Rs 26,000 crore in revenue in the cut in excise duty….READ MORE

Excise duty on petrol, diesel cut by Rs 2/L; Govt may suffer Rs 26k-cr loss

This comes at a time when diesel in Delhi scaled an all-time high of Rs 59.14 per litre

economy news: Facing public resentment over the recent spike in fuel prices, the government on Tuesday cut the excise duty on both branded and unbranded petrol and diesel by Rs 2 a litre from Wednesday. According to sources, the finance ministry was initially reluctant to reduce the duty due to revenue concerns, but relented after discussions with the petroleum ministry on implementing steps to bring down petrol prices to Rs 60-65 a litre.

While this would hit the revenues of the exchequer by Rs 13,000 crore in the second half of the current financial year at a time when the fiscal deficit has already touched 96 per cent of the Budget Estimates, consumers will get relief as the move would reduce the consumer price index (CPI)-based inflation rate by 9 basis points as a first round impact.

“(The) government has reduced the basic excise duty on petrol and diesel (both branded and unbranded) by Rs 2 a litre with effect from October 4, 2017. The revenue loss on account of these reductions will be about Rs 26,000 crore in a full year and Rs 13,000 crore in the remaining part of the current financial year,” the finance ministry announced on Twitter.

This comes at a time when diesel in Delhi scaled an all-time high of Rs 59.14 a litre, while other cities, too, saw a considerable increase in prices. The price of petrol in Delhi was at a two-year high of Rs 70.88 a litre on Tuesday. Currently, taxes constitute the excise duty of Rs 21.48 a litre, 30 per cent of the price of petrol, and Rs 17.33 a litre, 29 per cent, of the price of diesel.|Readmore…