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High VAT, Cess impositions on fuel could not help much yet in PWD road-maintenance works : Law Minister’s much hyped claims on fuel-revenue’s utilization by road-maintenance ends by burdening Tax-Payers
TIWN Oct 10, 2019
High VAT, Cess impositions on fuel could not help much yet in PWD road-maintenance works : Law Minister’s much hyped claims on fuel-revenue’s utilization by road-maintenance ends by burdening Tax-Payers
PHOTO : Pathetic condition of Manughat road, Locals blocked road on Oct 8, 2019 (Photo inset : Law Minister addressing media over cess hike, TIWN File Photo)

AGARTALA, Oct 10 (TIWN): So far cess and Value Added Tax (VAT) imposition could not help out the PWD in road maintenance added daily pathos of common men on broken roads throughout the state. Right now the VAT charges imposed on petrol and diesel are 23% and 15.5% accordingly, but while first ever increasing the taxes on the fuel, Law Minister Ratanlal Nath assured that the earned revenue from extra taxes to be used for road-maintenance. The conditions of national highways are too in deplorable shape, whereas a recent report alleged ‘shortage of fund’ under Central Govt to fund NHAI.On October 8, local people of Manughat, Longtarai Valley came in massive protest demanding immediate maintenance of the national highway.Various roads in the state left in deplorable condition allegedly due to lack of maintenance.

The roads which are under PWD are at the same time suffering due to lack of maintenance whereas the Law Minister while imposing cess said that the earned revenues to help in funding for road maintenance.

Cess imposition : Tripura cabinet on July 26, 2018 had decided first ever to bring ordinance to hike 2 % cess on Petrol, Diesel, Natural Gas.

While imposing the cess, the Law Minister Ratan Lal Nath said, “There are 3000 buses in Tripura, autos 34,000, E-Rickshaws' number is 8,300. Trucks including small and big are 28,000, cars 10,000, two wheelers above 3 lakhs. Around 4 lakhs of vehicles are running over state's pathetic roads. The roadway's condition is bad leading massive damages to the vehicles. People are suffering. The vehicles are losing their lasting quality. Transport movement is becoming tough. Delivery is getting delayed. Aiming to develop the economy and betterment of every citizens of the state, which will reduce the transport cost and also save time Govt has decided to lavy 2 % cess on fuel. That revenue will develop roadmaps. Once the transport become faster and can save time in delivery automatically it will reduce the transport cost and save the vehicles from damages.

“That’s why the Govt has decided to bring an ordinance under ‘Tripura Road Development Cess Ordinance 2018’ to impose the 2 % cess on petrol, diesel, natural gas”, said Ratan Lal Nath adding that the whole revenue will be used in road renovation.  

VAT imposition : Since in power at least 3 times the VAT charges were revised on petrol, diesel. In December 28, 2018 the revised rate imposed 23% VAT on petrol and 15.5% on diesel.

In this regard, a Congress leader said, Tripura Govt is unnecessarily imposing 24% tax whereas Central Govt imposed another 19% tax. If taxes of 12% by State Govt and 10% by Central Govt are being cut then the price will be downed at 60. In total now the fuel tax in Tripura is 43%.

A REPORT on 26th August revealed financial tight situation of Modi Govt for new road construction : The Prime Minister’s Office (PMO) has received suggestions that the National Highways Authority of India (NHAI) should stop constructing road projects and has sought a response on the matter from the Ministry of Road Transport and Highways headed by Nitin Gadkari.

The PMO is peeved about road infrastructure having become “financially unviable” and is concerned over “unplanned and excessive expansion” of roads declared as ‘national highways in principle’.

 

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