Reality Check India

Oil prices and Kargil

Posted in Uncategorized by realitycheck on May 27, 2008

The UPA government led by the Congress party is proposing a cess on income and corporate tax to address the recent spurt in international oil prices.

Consider this gem,

“We don’t want to see scarcity of petroleum products particularly kerosene and LPG,” Deora told reporters after the meeting. ..

Sources said a cess or surcharge like the one levied after the Kargil war, may be imposed on income and corporate tax to make up for the cut in customs duty on crude oil to zero from 5 per cent and an excise duty cut on petrol and diesel.

Source : PTI

Mr Deora (of the Congress party) – here is a question for you.

My neighbour Mr Mahadevan switched to his TVS 100 cc bike from his Santro car to deal with the last major hike in Petrol prices.  A cess on income tax is immoral and reprehensible to millions of Indians like him who adjust their consumption.  Why should my other neighbour Mr Selvam pay more income tax, he walks to his office for gods sake ?

Comparing a seasonal trend in oil prices to a national security crisis like the Kargil war is outrageous and insulting to both donors and jawans who laid down their lives.

The right approach is to Increase the fuel prices and deal with the fallout.  The bite in the pocket must be linked to consumption.

Is the UPA government up to the task ? Take a guess.


2 Responses

Subscribe to comments with RSS.

  1. Cupid said, on May 31, 2008 at 3:01 am

    Good point. Absolutely right. Why should those who are not using vehicles be penalized for the oil price hike? There is no justification for subsidizing oil prices. They should hike prices and deal with the fallout. It is that simple.

  2. Suraj said, on June 5, 2008 at 9:16 pm

    Good God, for once the UPA did something sensible, though the price hike coming at this time could well be political suicide.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: