Political tussle ensues over fuel price hike

NEW DELHI: The Congress on Wednesday hit out at the Bharatiya Janata Party-led Central government for increasing the excise duty on petrol and diesel amid the coronavirus disease pandemic.

Calling it “unfair”, Congress leader Rahul Gandhi said when the fight against Covid-19 is causing economic hardship to all citizens, the government instead of reducing prices has raised them. The former Congress president sought an immediate rollback of the increased prices.

“The ongoing battle with the coronavirus is causing severe economic hardship for our crores of brothers and sisters. At this time, instead of reducing prices, the decision of the government to raise prices of petrol and diesel by ~10-13 per litre is unfair and should be withdrawn,” he said in a tweet in Hindi.

His remarks have come a day after the government hiked excise duty and cess on petrol by ~10 per litre and on diesel by ~13 a litre.

Reacting to the hike, senior Congress leader P Chidamabaram suggested that governments must borrow to meet their deficits and not impose higher tax burdens when economic activity has ground to a halt.

“Governments should give money to the people in times of distress, not squeeze and take money from the people,” Chidambaram said.

“We have been pleading for cash transfers from the government to the bottom half of the people/families. Instead governments are doing a reverse transfer of money from the people to the government! Cruel,” he said.

New or higher taxes are justified only when the economy is booming, the former finance minister said in a series of tweets.