RBI Governor backs PM Modi’s pitch for states to reduce VAT on on petrol, diesel

News Network
June 8, 2022

New Delhi, June 8: Lending support to the Prime Minister Narendra Modi–led union government's pitch for states to reduce sales tax (VAT) on petrol and diesel, Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday said a cut in VAT on fuel will help soften inflationary pressures as well as expectations.

The central government had on May 21 cut excise duty on petrol by a record Rs 8 per litre and that on diesel by Rs 6 to after repeated hikes. At that time, it asked states to lower VAT to further provide relief. Almost no state reduced VAT.

Announcing the bi-monthly monetary policy, Das said a quick survey of urban households undertaken after the excise duty cuts on petrol and diesel on May 21 showed a significant moderation in their inflation expectations.

"In such a scenario, further reduction of State VATs on petrol and diesel across the country can certainly contribute to softening of the inflationary pressures as well as expectations," Das said.

Finance Minister Nirmala Sitharaman, at the time of announcing a reduction in excise duty, had urged states to reduce VAT. Her other cabinet colleagues including Oil Minister Hardeep Singh Puri made similar pleas.

But hardly any state reduced VAT after the May 21 excise duty cut announcement.

In April, Prime Minister Narendra Modi too had asked the states to lower their taxes to enable users to get the full benefit of the previous excise duty cuts of November 2021. Non-NDA party ruled states had not reduced VAT.

Post-November 2021 reduction in excise duty on petrol by Rs 5 per litre and that on diesel by Rs 10 a litre, 25 states and UTs had cut VAT to give further reprieve to consumers battered by record-high retail prices.

However, states ruled by non-NDA parties like Maharashtra, Andhra Pradesh, West Bengal, Kerala and Tamil Nadu had not reduced VAT.

"Many states like Maharashtra, West Bengal, Telangana, Andhra Pradesh, Tamil Nadu, Kerala, and Jharkhand did not agree to our request for some reason or the other, and the burden on the people of these states continued," Modi had said on April 27.

"I am urging you that in the interest of the nation, please undertake what should have been done six months back in November. Give consumers in your state the benefit by lowering the VAT."

For a nation 85 per cent dependent on imports to meet its oil needs, the surge in international crude oil prices following Russia's invasion of Ukraine, together with food and commodities, has contributed to pushing the inflation rate to 7.8 per cent in April.

To control the spiralling prices, the Union Government reduced excise duty.

The two reductions - first in November 2021 and then in May 2022, roll back the Rs 13 and Rs 16 per litre increase in taxes on petrol and diesel effected between March 2020 and May 2020 to avoid passing on to consumers the sharp fall in international oil prices.

The excise duty hikes of 2020 had taken central taxes on petrol to their highest level of Rs 32.9 per litre and that on diesel to Rs 31.8 a litre.

After the latest excise cut, the incidence of central tax on petrol came down to Rs 19.9 a litre and that on diesel to Rs 15.8 per litre.

Central excise duty makes up for 20 per cent of the price of petrol, down from 26 per cent earlier. It now makes up 17.6 per cent of diesel price. After considering local sales tax or VAT, the total tax incidence on the price of petrol is 37 per cent and that on diesel is 32 per cent, down from 40-42 per cent earlier.

The excise tax on petrol was Rs 9.48 per litre when the Modi government took office in 2014 and that on diesel was Rs 3.56 a litre.

The government had, between November 2014 and January 2016, raised excise duty on petrol and diesel on nine occasions to take away gains arising from plummeting global oil prices.

In all, duty on petrol rate was hiked by Rs 11.77 per litre and that on diesel by 13.47 a litre in those 15 months that helped government's excise mop up more than double to Rs 2,42,000 crore in 2016-17 from Rs 99,000 crore in 2014-15.

It cut excise duty by Rs 2 in October 2017 and by Rs 1.50 a year later. But it raised excise duty by Rs 2 per litre in July 2019.

It again raised excise duty on March 14, 2020, by Rs 3 per litre each. The government on May 6, 2020, again raised excise duties by Rs 10 per litre on petrol and Rs 13 per litre on diesel.

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News Network
November 22,2025

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The Israeli regime’s forces have killed two Palestinian children in the Gaza Strip every day since the ceasefire began in early October, UNICEF has warned.

The UN children’s agency said on Friday that Israeli forces continue to attack Palestinians in Gaza even though the agreement was meant to stop the killing.

“Since 11 October, while the ceasefire has been in effect, at least 67 children have been killed in conflict-related incidents in the Gaza Strip. Dozens more have been injured. That is an average of almost two children killed every day since the ceasefire took effect,” UNICEF spokesperson Ricardo Pires said in Geneva, reminding that each number in the statistics represents a child whose life had ended violently.

“These are not statistics,” he said. “Each child had a story, a family, and a future that was stolen from them.”

Data from Palestinian factions, human rights groups, and government bodies recorded since the US-brokered ceasefire deal went into effect on October 10 show that Israeli forces have carried out numerous attacks, each constituting a separate ceasefire violation.

UNICEF teams say they repeatedly continue to witness heart-wrenching scenes of fearful Palestinian children sleeping outdoors with amputated limbs, while others live as orphans in flooded, makeshift shelters.

“I saw this myself in August. There is no safe place for them. The world cannot normalize their suffering,” Pires said, lamenting that the UN could “do a lot more if the aid that is really needed was entering faster.”

The UNICEF spokesperson warned that with the advent of winter, the risks for hundreds of thousands of displaced children will increase.

He warned, “The stakes are incredibly high” for children as winter acts as a threat multiplier, where children have no heating, no insulation, and few blankets. He said respiratory infections rise.

“Too many children have already paid the highest price,” Pires said. “Too many are still paying it, even under a ceasefire. The world promised them it would stop and that we would protect them.”

“Now we must act like it,” the UNICEF spokesperson added.

Since the Israeli regime launched its genocidal war against Palestinians in Gaza in October 2023, it has killed nearly 70,000 people in the territory, most of them women and children, and injured over 170,000 more, while reducing most of the structures in the enclave to rubble.

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News Network
November 21,2025

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An Indian Air Force (IAF) Tejas fighter jet crashed on Friday, November 21, afternoon during its aerial demonstration at the Dubai Air Show, plunging to the ground at around 2:10 pm local time while performing a manoeuvre before thousands of spectators.

The IAF confirmed the incident, stating that a Tejas aircraft participating in the show had crashed and that further details were being gathered. An Air Force spokesperson said more information would be shared after initial assessments.

The crash sent thick black smoke billowing into the sky near the airport, causing panic among visitors, including families and children who had gathered to watch the display. Authorities have not yet confirmed whether the pilot managed to eject before the aircraft went down. Emergency response teams rushed to the scene, and officials have not released information on casualties or damage so far.

The Tejas is a 4.5-generation, multi-role fighter aircraft developed indigenously by Hindustan Aeronautics Limited (HAL). Designed for versatility, it is capable of offensive air support, close combat, ground attack missions and maritime operations. The aircraft family includes single-seat fighters and twin-seat trainers for both the Air Force and Navy.

HAL describes the latest version, the LCA Mk1A, as the most advanced in the series, featuring an AESA radar, an upgraded electronic warfare suite with radar-warning and self-protection jamming, smart multifunction displays, a digital map generator, a combined interrogator–transponder system and a modern radio altimeter. These enhancements significantly improve the aircraft’s combat capability and survivability.

Further updates from IAF and UAE authorities are awaited.

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News Network
November 27,2025

Bengaluru, Nov 27: Karnataka Chief Minister Siddaramaiah’s camp is reportedly on alert as the Congress leadership tussle in the state intensifies, particularly amid speculation over the potential promotion of Deputy Chief Minister D.K. Shivakumar. Siddaramaiah is said to be in a “wait-and-watch” mode after admitting to “confusion” earlier this week and urging the party to “put a full stop” to it.

Sources say his supporters are ready to act if senior leaders — including party chief Mallikarjun Kharge, Sonia Gandhi, and Rahul Gandhi — give any indication of backing Shivakumar. If the party insists on a leadership change, Siddaramaiah’s camp has a list of alternatives, underscoring the deep rift between the two leaders. One possible candidate is Home Minister G. Parameshwara, a Siddaramaiah loyalist and influential Dalit leader.

The strategy was reportedly finalized at a meeting led by PWD Minister Satish Jarkiholi, another Siddaramaiah supporter, who stressed that Delhi leaders need to resolve the issue. Kharge and the Gandhis are expected to meet soon, after which Siddaramaiah and Shivakumar may be summoned to Delhi.

Shivakumar has largely stayed non-confrontational, publicly endorsing Siddaramaiah and downplaying speculation about his own ambitions. However, he has made pointed comments emphasizing the importance of honoring promises, directed at Siddaramaiah.

The feud traces back to the 2023 state election, when Siddaramaiah was chosen as Chief Minister while Shivakumar, who led the party’s campaign, was made Deputy CM and state party chief — a departure from the Congress’ usual “one post per person” rule.

There were also hints of a prior understanding that Siddaramaiah would step down midway through the term. As the halfway mark passed last week, Shivakumar-aligned lawmakers have ramped up pressure on the party for a leadership change, with Shivakumar himself hinting at stepping down as state party chief to pursue the top job.

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