Patna, (Bihar Times): Deputy chief minister, Sushil
Kumar Modi, who also holds the finance portfolio,
demanded Rs 1,000 crore package from the Centre to
compensate the loss of Bihar’s share in the central
taxes due to reduction in excise and customs duties on
petroleum products. The state is to suffer a loss of
Rs 911 crore on this account. In addition the state is
likely to face the financial burden due to the rise in
petroleum prices. Thus the accumulated loss would be
something around Rs 2,000 crore. Modi urged the Centre
to at least compensate or share half of this burden.
He made a strong plea at the meeting of the empowered
committee of finance ministers of states in New Delhi
on Monday.
The meeting was convened to assess the impact of the
recent hike in the petroleum prices on states.
The deputy chief minister also raised the issue of the
basic price fixed by petroleum companies and demanded
uniformity in the process. According to him the basic
price of petrol and diesel is one rupee more in Bihar
than in other states. He called for developing
transparent mechanism of fixing the basic price.
Giving figures for the financial losses the state is likely to incur in the wake of its decision to reduce the valued added tax (VAT) on petro products, including LPG cylinders, Modi said Bihar would suffer a revenue loss of Rs 104 crore due to this decision.
The deputy CM, who also holds the finance portfolio, categorically said that the state government would not bow to the pressure of petroleum companies to reduce the tax imposed on aviation turbine fuel (ATF) and would continue with the existing tax rate of 29 per cent.
