Centre rules out excise duty cut despite Oppn outcry

NEW DELHI: On a day when opposition parties held nationwide protests against record high petrol and diesel prices, the government ruled out cut in taxes on petrol and diesel for now as neither the central government nor some states have the appetite to stomach revenue loss from such a move, a top government official said Monday.

While a cut in excise duty that the central government levies will impact fiscal deficit, states like Bihar, Kerala, and Punjab are not in a position to cut sales tax (or VAT), the official, who wished not to be identified, said.

The government, he said, anticipates that international oil prices, which together with a drop in the value of rupee has been fuelling the fuel price rise to record levels, will moderate in coming days to take pressure off.

The BJP Monday defended the rise in oil prices, attributing it to global factors, and accused the Congress and other opposition parties of resorting to violence during the ‘Bharat Bandh’ as people did not support their call.

Union minister Ravi Shankar Prasad acknowledged that the people were facing “momentary difficulty” due to increasing petrol and diesel prices and said they understand that this was due to factors beyond the control of the central government.

Noting that oil prices had gone down after the Bharatiya Janata Party government came to power in May 2014, before they went up, he said it is a problem whose solution is not in its hands.

“We are standing with people in their problem. We are trying to redress the issue and will do that,” he told a press conference.

Prasad claimed that the people understood the government’s point of view and refused to support the ‘Bharat Bandh’ call given by the Congress and

several other opposition parties.

Congress president Rahul Gandhi on Monday launched a sharp attack on Prime Minister Narendra Modi and his government as more than 20 opposition parties supported an all-india strike over rising fuel prices. Accusing the government of spreading hatred and dividing the nation, Gandhi said, “The youth of the country are tired”.

Former prime minister Manmohan Singh on Monday said it was time for all opposition parties to shed their differences and move forward unitedly “to save” sovereignty and democracy in the country. The Narendra Modi government has taken a lot of steps not in the interest of the country and has now “crossed the limit”, Singh said.

Samajwadi Party supremo Akhilesh Yadav said on Monday hike in prices of petroleum products on the day opposition parties staged ‘Bharat Bandh’ shows government’s “insensitivity” towards common people.

NEW DELHI: Internet major Google is learnt to have agreed to following the RBI'S local data storage norm for payment services but wants time until December to comply with.

"Google during the US visit of Law and IT minister Ravi Shankar Prasad conveyed to him that they are ready to comply with RBI rules but want two months more to comply with data storage rule," an official source told reporters.

Prasad visited Google headquarters in California in August-end.

The RBI has directed all companies running payment services to store data in India by mid-october.

Amid concern around data security, the Reserve Bank of India is learnt to have asked payment services firms to provide an update on action taken by them to store transaction data in the country in every fortnight.

The banking regulator had further said that at present "only certain" payment system operators and their outsourcing partners store the payment system data either partly or completely in the country.

The order was issued at the time social media major Facebook faced a global backlash over breach of user data.