Govt trying to recoup losses due to Nimo, Mallya: Oppn

Also, FinMin rejects possibility of bringing down price of petrol, diesel in state

There seems to be no hope for Mumbaikars. The state government has expressed its inability to reduce the local taxes. Taking a cue from the public sentiment, the opposition Congress and the Nationalist Congress Party staged protests in the city, highlighting the fact that the hike is not due to spurt in international crude prices but because of the high local levies. The Congress even went on to allege that it is a way to recoup the losses inflicted on the banking sector by fugitives like Nirav Modi and Vijay Mallya.

In Thane, protestors marched through the streets with a tableau of a bullock cart on which a motorcycle is even as they complained about rising prices and government policies that have failed to curb inflation.

The Mumbai protest was led by Ashok Dhatrak outside Petroleum House at Nariman Point. “Firstly, crude oil prices in 2014 were more than US $100 per barrel, fuel prices were stable. Since then crude oil prices have fallen or remained stable, despite it the fuel prices have been spiralling high. Now they have reached an all-time high,” said Dhatrak. Moreover, NCP leaders demanded that the state government control the ValueAdded Tax (VAT) cost. NCP alleged that the entire pricing index will have a cascading effect on the common man. “If diesel prices go up, the common public is definitely going to be severely affected. If diesel prices go up, it is obvious that trucks, goods and public transport will become more expensive,” said state NCP spokesperson Clyde Crasto.

Ashok Chavan, Maharashtra Pradesh Congress Committee president, blamed the government for trying to recover the losses of banks, which had been duped by Vijay Mallya and Nirav Modi. “India is the only country in South Asia where petrol and the diesel is costly,” said Chavan while speaking to media at Tilak Bhavan at Dadar. He demanded that petrol and diesel should be brought under GST. At present, it is outside GST and the state has a right to charge VAT and cess of their own choice.

Sudhir Mungantiwar, minister for finance and planning, rejected the possibility of bringing down the price of petrol and diesel in the state. He said, “In October last year, Maharashtra had slashed VAT on petrol and diesel prices by Rs 2 and Rs 1 respectively. It cost a revenue loss of Rs 3000 crore. Even if we cut the price by Rs 1 per litre, we will have to bear a loss of Rs 1500 crore. It is also a huge amount, as we do not have any option to gain more revenue from imposing new taxes. All states have lost their right to impose new taxes after roll-out of GST.”

He said, “I have requested the Union government to cut the price of petrol and diesel from their own pocket or give compensation to the state to ensure that people get relief.”

In Thane, protestors marched through the streets with a tableau of a bullock cart with a motorcycle on it, even as they complained about rising prices and government policies that have failed to curb inflation