An early morning meeting between oil minister and finance minister had an interesting twist to solve the oil problem. Government is mulling over increasing your income tax burden in the form of a petroleum products cess.
But the question is how much cess would be needed. As per estimated tax collection figures:
- Government is supposed to collect 3,46,361 crore rupees direct taxes by the end of this financial
- 1 percent cess on this would amount to Rs3500 crore rupees in the kitty
- 3 percent cess would fetch Rs10,500 crore rupees
Government is mulling over the cess to offset the demand for duty cuts on crude and petroleum products. But analysts point out that a cess will prove to the proverbial drop in the ocean and will mean giving from one hand and taking it away from the other. |
Published on 
Tags:
