Slamming the Central government, Chhattisgarh Chief Minister Bhupesh Bhaghel said that imposing cess impacts states' share from central excise duty.
The opposition has been opposing the Centre continuously over the past few months over rising fuel prices across the country.
Addressing the reporters, the Chief Minister said, "Under central excise duty, rates of petroleum products were increased and we were given the share, but the Centre imposed 3-4 per cent cess, which goes directly to them. I had opposed it then...Imposing cess takes away states' share from central excise duty."
"It is good if they bring fuel prices under GST, crude oil prices are going down internationally, but increasing in India...But the concern is that as per Act, money belonging to the states is also not given to us. The Centre doesn't abide by the Act...", he said.
During the recently held monsoon session, Minister of State for Finance Pankaj Chaudhary on July 20 had said that the excise duty rates on petrol and diesel have been calibrated to generate resources for developmental items of expenditure keeping in view the present fiscal position.
Responding to a starred question on whether Government would consider to subsume the higher prices under various other taxes being recovered so that common people are not made to suffer the burden, the MoS for Finance in a written reply to a question in the Rajya Sabha said, "The excise duty rates on petrol and diesel have been calibrated to generate resources for infrastructure and other developmental items of expenditure keeping in view the present fiscal position."
"Prices of petrol and diesel are market-determined with effect from June 26, 2010, and October 19, 2014, respectively. Since then, the Public Sector Oil Marketing Companies (OMCs) have been taking appropriate decisions on the pricing of petrol and diesel on the basis of international product prices and other market conditions," Chaudhary said in his reply.
"The OMCs have increased and decreased the prices of petrol and diesel according to changes in international prices and rupee-dollar exchange rate. The Government continues to modulate the effective price to consumer for Subsidized Domestic LPG," he said.
"Article 279 A (5) of the Constitution prescribes that the Goods and Service Tax Council shall recommend the date on which the goods and services tax be levied on petroleum crude, high-speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel (ATF). Also as per Section 9(2) of the CGST Act, the inclusion of these products in GST will require the recommendation of the GST Council. So far, the GST Council, in which the states are also represented, has not made any recommendation for inclusion of petrol and diesel under GST," his reply stated.
( With inputs from ANI )
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