Tripathi blames finance ministry for higher tax on petroleum

New Delhi, Feb 9 (UNI) Ministry of Petroleum and Natural Gas former Secretary S C Tripathi today blamed the finance ministry for keeping the taxation at a higher level on petroleum products.

In a statement issued here, Mr Tripathi alleged that, ''a vested interests in the finance ministry is responsible for this high rate of taxation on petroleum products.'' Mr Tripathi said because of the costlier energy, India has already forfeited the advantage to China in one of the vital sectors like the manufacturing.

While China is trying its best to keep the energy prices low, vested interests here are doing the opposite, he added.

''What do falling crude prices mean for India's fiscal deficit,'' he said at a function here organised by the Observer Research foundation.

He added many economists wanted to keep the prices of petroleum products high, arguing it would lead to greater Gross Domestic product (GDP) growth.

The former PNG secretary also critised the disproportionate way of taxing petroleum products, he questioned when petrol is taxed at 52 per cent how can the country is taxing just eight per cent on Aviation Turbine Fuel (ATF).

He noted as high taxes and high crude oil prices brings huge revenue to the Government, the Finance Ministry was not trying to tap revenue from other sources.

''They don't want to leave the comfortable position they are in now because of high oil prices,'' he said.

He deplored the moves to reintroduce the administered price mechanism through the backdoor and added the Government is unfortunately bringing backwards as far as the reform process is concerned.

UNI