Business Desk:  Reserve Bank Governor Shaktikanta Das said on Thursday that a coordinated effort between the Central and State Governments needs to be done to reduce the taxes on petrol and diesel. Shaktikanta Das was speaking at an event organized by the Bombay Chamber of Commerce. He said that coordinated action is needed between the Center and the states as taxes are levied by both of them. ”He said that it is important to reduce taxes to a reasonable level.

Center, coordinated effort between states is needed: Das

Das, however, also said that there is revenue pressure on both the Center and the states. They have to spend more money to get the country and people out of the pressure created by the Kovid-19 epidemic. In such a situation, the need for revenue and the compulsion of governments are fully understood. But there is also a need to understand that it also has an impact on inflation. Higher prices of petrol and diesel have an effect on the cost of manufacturing production.

Need to invest on health facilities: Das 
Das said that the Reserve Bank is doing a lot of internal work on digital currency and a progress document will be released soon with a comprehensive guideline. On the issue of asset restructuring companies (ARC), he said that we are improving and upgrading the regulatory framework in the case of ARC. In the new budget, it has been announced to create ARC for the management of stuck loans of banks. Shaktikanta Das said that this would not affect the activities of the current ARC. The governor also stressed the need for companies to invest more in the healthcare sector. 

India on the road to success: RBI Governor 
Reserve Bank Governor said that India stands on the threshold of moving forward on the path of success. Regarding the cryptocurrency, he said that the bank has some concerns about it which have been shared with the government. Das said that the Indian financial sector is in a better position today than ever before, with the central bank taking an accurate view of the rise in stressed assets in banks. "As soon as we get any indication about the stressed property, we will immediately negotiate with the banks and work proactively to diagnose the problem."

Business Desk: Central Board of Indirect Taxes and Customs (CBIC) Chairman M Ajit Kumar said on Tuesday that the government would consider reducing petrol and diesel prices by cutting taxes when the appropriate time comes. The indirect tax collection from record excise duty on petrol and diesel was up 59 percent year-on-year in the financial year 2020-21, ending March 31. 

In a video call with reporters to give information about tax figures, he said, "We hope that the revenue will be good in the coming months." "As far as fuel price cuts are concerned," Kumar said , The Government is constantly on the lookout on this matter and I am confident that a decision will be taken whenever the time comes. Is considering a cut. However, he did not elaborate on the appropriate timing. 

The price of petrol and diesel was
raised by the government by Rs 13 per liter on petrol last year, while on diesel by Rs 16 per liter. The excise duty on petrol is now Rs 32.90 per liter. The petrol rate in Delhi is Rs 90.56 per liter and excise duty is 36 percent. Excise duty on diesel is Rs 31.80 per liter and excise duty is 39 per cent of its retail selling price of Rs 80.87 per liter. 

Adding VAT (value added tax) of states constitutes 55 to 60 per cent of the total tax in retail prices of these fuels. Petrol prices reached Rs 100 a liter in February in some parts of the country, Rajasthan, Maharashtra and Madhya Pradesh, amid the rise in the price of crude oil in the international market. Although assembly elections were announced in five states, including West Bengal, Tamil Nadu and Kerala, the price hike was put on hold. CBIC member (budget) Vivek Johri said one of the reasons for the 59.2 percent increase in excise collection is the increase in the petroleum tax rate. "If there is a deduction, the revenue collection will be affected by the excise duty," he said. 

Tax collection on oil reached Rs 2.94 lakh crore
Last month, Petroleum Minister Dharmendra Pradhan said in Parliament that tax collection on petrol and diesel was Rs 52,537 crore in 2013, which increased to Rs 2.13 lakh crore in 2019-20. At the same time, it increased to Rs 2.94 lakh crore in the first 11 months of 2020-21. CBIC did not separately provide data on excise collection on petrol and diesel in 2020-21.