The Congress on Wednesday described the government’s decision to increase excise duty on petrol and diesel as “financial treason”, alleging the “cruel” Narendra Modi regime was torturing and robbing people during a pandemic and the resultant economic crisis when other countries were giving money in the hands of their citizens.
Although Tuesday’s hike will not increase the market rates of petrol and diesel, the mark-up in excise duty will fill the coffers of the government.
The Congress consultative group on the Covid-19 crisis held a videoconference with the party’s chief ministers to discuss the key concerns. The party demanded that if indeed the Centre wanted to “extort” people, then 75 per cent of the revenue generated by taxing petroleum products must be transferred to the states, which are at the frontline of the battle against the coronavirus catastrophe.
Congress communications chief Randeep Surjewala said after the meeting: “The Centre will collect Rs 1.40 lakh crore from the two increases in the excise duties — on March 14 and May 5 — after the outbreak of the novel coronavirus. This is financial treason.
“But if the Centre is hell-bent on extorting this money from the grief-stricken people, let it pass on at least 75 per cent of the amount to the states so that this could be used in serving them in the time of crisis. After all, the battle is going on in the states and districts and the states are starved of funds.”
At the meeting on Wednesday morning, Congress leaders expressed grave concern over the acute financial crunch the states were grappling with.
Asked if the Congress would approach other Opposition parties to mount pressure on the Centre jointly for a much-needed financial package, Surjewala said: “Why should this be left to the Opposition? This is not a partisan issue. It is a national cause. It is the bounden duty of the Prime Minister to help the states.
“The Centre is under obligation to make an assessment of the financial requirements of the states. The Prime Minister should be conscious of his duty, of his federal responsibilities.”
Journalists asked the Congress’s chief spokesperson about the options before the party if the Centre did not offer any financial help to the states. “It is not about the option before the Congress but the option before the nation. The Congress is only a small part of the nation,” Surjewala replied.
“Every state is in crisis — all the states. It is only that the BJP chief ministers are scared to speak the truth before the Prime Minister. The Centre is not only punishing the citizens by indulging in profiteering on petrol, it is also pushing the states into financial distress,” he added.
The Congress leader pointed out that petrol was being sold at Rs 39.81 per litre in 2014 when the international price of the crude was $108 per barrel. Now, petrol is being sold at Rs 71.26 per litre when the international price is $23.38 per barrel.
“The government’s documents show they have earned a profit of Rs 17 lakh crore by levying duties on petroleum products in the last six years. Where has the money gone? The Prime Minister will have to answer the concerns,” Surjewala said.
He added: “The figures are shocking. In 2014 when the Congress relinquished power, taxes on petrol and diesel, respectively, were Rs 9.48 and Rs 3.56 only per litre. Now it Rs 32.98 on petrol and Rs 31.73 on diesel. The nation must know how Modiji is looting the people. This is nothing but inflicting torture on the people.”
Although the hike in excise duties on petrol and diesel overrode other concerns at Wednesday’s meeting chaired by Sonia Gandhi to review the functioning of the Congress-ruled states, the party did note the Centre’s apathy towards states’ finances and lack of a national plan to deal with the crisis.
Sonia was quoted as saying at the meeting: “After May 17, what? After May 17, how? What criteria is the government using to judge how long the lockdown is to continue?”
Former Prime Minister Manmohan Singh also wondered what was the government’s strategy after May 17, when the ongoing leg of the lockdown ends.
He suggested that the Congress chief ministers ask the Centre about the strategy on economic revival and whether the lockdown will continue after May 17.
Former finance minister P. Chidambaram was quoted as saying: “States are bleeding in terms of finances but no money is being allocated by the Centre. A number of newspapers have brought out the unavailability of finances with states.”
All the Congress chief ministers highlighted the extent of the financial problem but promised to bear the expenses of the travel of the migrant workers returning home. They also confirmed that money was being charged by the railway ministry for the travel.
While the chief ministers of Chhattisgarh and Rajasthan — Bhupesh Baghel and Ashok Gehlot — said immediate assistance from the Centre was needed, Punjab and Puducherry chief ministers Amarinder Singh and V. Narayansamy objected to officials sitting in Delhi classifying coronavirus-affected zones without consulting the states.