Excise duty hike storm hits Arun Jaitley: All you need to know about FM speech in 5 points

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New Delhi | Updated: December 16, 2015 4:29 PM

After govt was cornered by the Opposition over the latest excise duty hike, flaying the FM for not passing on the benefit of a fall in oil prices to consumers, FM Arun Jaitley rushed to explain.

Arun Jaitley on gstFinance Minister Arun Jaitley said that benefits were being passed on to the consumer, but the money also needed to be used for development work. (PTI)

After govt was cornered by the Opposition over the latest excise duty hike, flaying the FM for not passing on the benefit of a fall in oil prices to consumers, FM Arun Jaitley rushed to explain. Congress said, “It has caused anguish to all of us that there is a 7th hike in central excise duty on petrol and diesel… When this government came crude oil price (in the international market) was around $100, while it fell to $35 on Tuesday. In the last financial year, the saving on oil import was $88 billion. You are profiteering and it not transferring the benefit to people.” Here are top 5 points Arun Jaitley speech raised said:

1. Arun Jaitley said: “Benefits were being passed on to the consumer, but the money also needed to be used for development work.”

2. Arun Jaitley added, “Subsidy is given on petrol and diesel, the money for which comes from the tax given by people, and to recover that for fiscal deficit, the money for development work used to be cut.”

3. Arun Jaitley said, “”Fiscal deficit was achieved by cutting amounts like Rs.1,20,000 crore in one given year. Today what has happened, the international price has fallen, the present government has a clear policy, that has been shared in three ways. One part of fall in prices goes to consumer.”

4. Arun Jaitley averred, “That so far prices of petrol have been cut 20 times and prices for diesel have gone down 16 times. Several states increased VAT (Value Added Tax) on Petrol as soon as center reduced prices. I am not complaining against any state India has to take utmost advantage of the fall in oil prices.”

5. Arun Jaitley finished by saying, “”First part of the fall goes to benefit of consumer, the second part goes to the central government when it levies excise. The states are getting 42 percent of this excise. Over and above every state has VAT. We not complaining because states also need money – a part of benefit goes for development work. We use all money for national highway and rural road. This year we will achieve fiscal deficit without fiscal cut.”

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