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Taxes, a Make in India blow to people

In a double blow, eating out, phone bills, internet, movies, healthcare and banking transactions will cost more after a new tax came into force even as a steep hike in price of petrol, diesel, ATF and non-subsidised LPG was also effected on Wednesday.

Taxes, a Make in India blow to people
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Fact File

New Delhi

Non-subsidised cooking gas (LPG) now costs Rs 548.50 in Delhi as against Rs 527.50 previously. The hike comes on the back of a Rs 18 per cylinder increase in price on May 1. Subsidised LPG costs Rs 419.18 per 14.2-kg cylinder. 

The three fuel retailers – Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum – revise jet fuel and non-subsidised LPG prices on the first day of every month, based on the average international price in the preceding month.

Simultaneously, aviation turbine fuel or jet fuel price was hiked by a steep 9.2 per cent, while that of non-subsidised cooking gas was raised by Rs 21 per cylinder. In the fourth straight monthly increase in rates on global cues, ATF price was increased by Rs 3,945.47 per kilolitre, or 9.2 per cent, to Rs 46,729.48 per kilolitre, the oil companies announced. 

The hike comes on the back of 1.5 per cent increase effected on May 1 and a steep Rs 3,371.55 (8.7 per cent) hike on April 1. Prior to that, rates were hiked by steep 12 per cent, or by Rs 4,174.49, on March 1. Rates vary at different airports because of differential local sales tax or value-added tax (VAT). 

Jet fuel constitutes over 40 per cent of an airline’s operating cost and the latest price increase will add to the financial burden of cash-strapped carriers. No immediate comment was available from airlines on the impact of the price increase on passenger fares. 

The simultaneous hike in prices of LPG and ATF coupled with the kicking in of the Krishi Cess and the Equalization Levy from June 1, has sent citizens into a tizzy and many of them took to Twitter to voice their protest on the added financial burden. 

According to TG Anbarasan, a financial consultant, “The hikes will affect the common man. The barrel rates are going down but the petrol prices are only increasing. This will hurt national growth and severely upset industries.”

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