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TN CM, FM blame Centre for fuel price hike

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Tamil Nadu Chief Minister M.K. Stalin and Finance Minister Palanivel Thiaga Rajan on Thursday blamed the BJP-led central government for hiking the petrol and diesel prices.

Speaking in the state Assembly, Stalin said as the excise duty has to be shared with the state, the Central government reduced that while hiking the cesses and surcharges which are not shared with the states.

The two Ministers were responding to Prime Minister Narendra Modi’s call on Wednesday to states to reduce the Value Added Tax (VAT) on fuel “in the spirit of cooperative federalism”.

Modi on Wednesday lit the fuse citing the Central government reducing petrol and diesel prices by Rs 5/litre and Rs 10/litre, respectively, while many states have not followed suit.

Stalin said hiking the cesses and surcharges the Central government increased the burden on the common man while earning for itself lakhs of crore of rupees.

As per the figures of Petroleum Planning and Analysis Cell (PPAC), the total contribution of the petroleum sector to the central exchequer galloped from Rs 172,065 crore in 2014-15 to Rs 419,884 crore in 2020-21 and for the nine month period in FY22, it was Rs 310,155 crore.

On the other hand, the state’s revenue went up from Rs 160,554 crore in FY15 to Rs 217,650 crore in FY21 and Rs 207,658 crore for the nine month period in FY22.

“While both, the Central and the state governments, say that they get the revenue for investments in infrastructure, the PPAC figures show that the Central government has further leeway to reduce the rates,” an industry official told IANS on the condition of anonymity.

According to Stalin, owing to some state elections, the central government reduced the oil prices and after winning the polls, the prices were hiked fast.

Meanwhile Rajan urged the Centre to remove cesses and surcharges on petrol and diesel revert to the 2014 rates, an act which is fair and simple.

“We have repeatedly urged the Union government to reduce the cesses and surcharges being levied and merge them with the basic tax rates so that states get their rightful share from the proceeds of the Union taxes,” Rajan said.

According to Rajan, since Tamil Nadu levies ‘ad valorem’ taxes which are applied after Central taxes, this move by the Centre will cause an additional loss of about Rs 1,050 crore in annual revenue to the state.

“Given that the Union Government’s taxes continue to be exorbitant, it is neither fair nor feasible for the State Government to further reduce taxes.”

He hoped that the Central government would heed to this reasonable request in the “true spirit of cooperative federalism”.

He said the Centre’s levies on petrol have gone up substantially in the past seven years since Modi took charge for the first time in 2014.

Listing out the basic points and the tax rates on petrol and diesel, Rajan said on August 1, 2014, the basic price was Rs 48.55 per litre for petrol and Rs.47.27 per litre for diesel.

On November 4, 2021, the basic price of petrol was Rs 48.36 per litre while that of diesel was Rs 49.69 per litre.

On August 1, 2014, the Centre’s taxes were Rs 9.48 per litre on petrol and Rs 3.57 per litre on diesel. At that time, the state government taxes were at Rs 15.67 per litre on petrol and Rs 10.25 per litre on diesel.

“Prior to the reduction of taxes on petrol and diesel by Union Government, the levy of tax, including cesses and surcharges by Union Government on petrol was Rs 32.90 per litre and Rs 31.80 per litre on diesel,” he said.

“This has been reduced to Rs 27.90 per litre for petrol and Rs 21.80 per litre for diesel after the cut. So, when compared to 2014 (when basic price was roughly the same), the Union government still levies an additional tax of Rs 18.42 per litre for petrol (an increase of roughly 200 per cent) and Rs 18.23 per litre for diesel (an increase of over 500 per cent) compared to the taxes in effect when it took office in 2014.

“Though the revenue to the Union government has increased manifold, there has not been a matching increase in the revenues to States. This is because the Union government has increased the cess and surcharge on petrol and diesel while reducing the basic excise duty that is shareable with the states.

“In 2020-21, the revenue to the Union government from levies on petrol and diesel was Rs 3,89,622 crore which was 63 per cent higher than the revenue of Rs 2,39,452 crore in 2019-20. On the other hand, the government of Tamil Nadu in 2020-21 received only Rs 837.75 crore as share of the tax devolution from the Union Excise Duties on petrol and diesel as against the Rs 1,163.13 crore received in 2019-20,” the Minister added.

According to Rajan, after the advent of the Goods and Services Tax (GST) regime, the states have lost substantial powers to levy their own taxes and raise revenue.

“Further, the GST compensation regime comes to an end on June 30 and most states including Tamil Nadu have already requested the compensation to be extended considering the strain caused by the pandemic on state finances. However, there is no clarity from the Union government on whether the compensation will continue or not after June 30.”

On bringing petrol and diesel under the GST regime, Rajan had earlier said it can be done provided the Central government scraps the cess and surcharge levied on them.

On the other hand, AIADMK’s late Chief Minister J. Jayalalithaa was a strong advocate for changing the fuel pricing formula.

She had argued that the fuel rates should be determined based on import costs and refining charges and rates of domestic crude oil and the refining charges for the same instead of basing it on trade parity Price.

health

Centre committed to provide quality healthcare for workers, families: Union Minister

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New Delhi, Feb 22: The government is committed to providing quality healthcare services for workers and their families, Union Minister for Labour and Employment, Dr Mansukh Mandaviya, said on Saturday, emphasising the welfare of workers.

Dr Mandaviya, who visited Chandigarh to review key institutions under the Ministry, said that data-driven decision-making is crucial for enhancing economic growth, governance and service delivery.

As part of his visit, the Union Minister toured the Labour Bureau and the Employees’ State Insurance Corporation (ESIC) Model Hospital, Chandigarh, assessing their ongoing initiatives and interacting with stakeholders.

At the Labour Bureau, he was apprised of the objectives, scope and status of various activities, including price indices, labour statistics and surveys.

Dr Mandaviya also took a review of the performance and initiatives of the EPFO Regional Offices under the Punjab & Himachal Pradesh Zone at the Labour Bureau.

The Union Minister highlighted that reforms in the IT system are continuously transforming the functioning of the EPFO.

Later, the Union Minister visited the ESIC Model Hospital in Chandigarh and toured the hospital facilities. He interacted with patients receiving treatment at the hospital and reaffirmed to them that the government is committed to providing quality healthcare services for workers and their families.

Earlier this week, Dr Mandaviya instructed officials to prioritise efficient medical service delivery and expedite the timely completion of hospital renovation and construction projects.

During his visit to ESIC Hospital in Mumbai, he interacted with patients and staff to understand their experiences and feedback on the services provided.

To improve efficiency and transparency, he directed officials to accelerate the digitisation of processes, including inspections, ensure better upkeep of laboratories, and maintain a strong focus on transparency in regulatory activities.

Meanwhile, the payroll data of the Employees’ State Insurance Corporation (ESIC), released on Friday, show that as many as 17.01 lakh new employees were added in December 2024 while 20,360 new establishments were brought under the social security ambit of the ESI Scheme during the month, ensuring social security to more workers.

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National News

Congress accuses US Prez and BJP of misleading public on USAID funding, demands white paper

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New Delhi, Feb 22: The Congress party has intensified its attack on the BJP and US President Donald Trump, accusing both of brazenly lying about USAID funding to India. The party has demanded the release of a comprehensive white paper detailing all funds received by political parties, individuals, NGOs, and organisations from international developmental agencies, aid mechanisms, and multilateral forums.

The Congress emphasised that this white paper should not be limited to USAID funding alone but should encompass financial assistance from all foreign entities operating within the framework of Indian law.

In a sharp critique aimed at Prime Minister Narendra Modi, the Congress urged him to address allegations made by President Trump, who had claimed that the US was preparing to provide $21 million to India to increase voter turnout. The Congress party said PM Modi should confront Trump directly and refute the “baseless” claims made by the US President.

“The RSS-BJP and their entire ecosystem are making wild allegations to bolster their fabricated narrative against credible civil society members, NGOs, and political parties. These actors must not only be named and shamed in public forums but also face legal action for spreading falsehoods and misleading the nation,” said Pawan Khera, Chairman of Media & Publicity (Communications Department), AICC at a press conference here on Saturday.

A report published by a leading Indian daily on Friday clarified that the $21 million in question was not directed toward India but was instead allocated to Bangladesh.

The Congress questioned the Modi government’s apparent ignorance of this development in a neighbouring country, asking, “If the funds were directed to Bangladesh, how can the Modi government remain unaware of such significant financial movements in the region? Does this not raise serious concerns about the government’s effectiveness in managing its neighbourhood policy?”

The party also dismissed the BJP’s claims regarding a 2012 agreement between the Election Commission of India (ECI) and the International Foundation for Electoral Systems (IFES) — a member of the Consortium for Elections and Political Process Strengthening (CEPPS) — as misleading.

“The IFES was engaged by the ECI to develop a curriculum on election management, not to influence elections in India,” Khera stated. “The course material developed by IFES was used not for domestic elections but to train electoral officials from across the world. The Election Commission itself highlights on its website that it has trained 69,362 election officials from 109 countries under this initiative.”

The Congress party’s demand for transparency and accountability on USAID funding in India has added fuel to the ongoing political slugfest between Congress and the BJP.

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Maharashtra

Maha minority panel to seek shorter working hours for Muslim staff during Ramzan

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Mumbai, Feb 22: After Telangana and Andhra Pradesh permitted Muslim government employees to leave offices early during the fasting month of Ramzan, similar demands are now being raised in Maharashtra and other states.

Maharashtra Minority Commission Chairman Pyare Khan confirmed that the commission has received multiple applications requesting the state government to allow Muslim employees to leave work an hour early during Ramzan.

“We have received several requests from people asking for permission to leave offices an hour early during Ramzan. India is a great example of ‘Ganga Jamuna Tehzeeb,’ where people from different communities live together in harmony,” Khan told media.

He added that he plans to present this demand to Maharashtra Chief Minister Devendra Fadnavis through an official letter.

The demand follows orders issued by the Telangana and Andhra Pradesh governments, allowing Muslim employees, including teachers and contract workers, to leave work at 4 p.m. instead of the usual 5 p.m. from March 2 to March 30 to perform religious rituals.

“The government hereby permits all the employees who profess Islam, including teachers and persons hired on contract, out-sourcing basis, and Village/Ward Secretaries, to leave their offices/schools early by an hour before closing time on all working days during the Holy month of ‘Ramzan’ to perform necessary rituals,” read the Andhra Pradesh government order.

Similarly, the Telangana government order stated: “Government hereby permits all Muslim government employees/teachers/contract/out-sourcing/boards/corporations and public sector employees working in the state to leave their offices/schools at 4 p.m. during the holy month of Ramzan, i.e., from March 2 to 31, to offer necessary prayers, except when their presence is required due to exigencies of services.”

The demand is also gaining traction in Karnataka, where Pradesh Congress Committee (KPCC) Vice Presidents M.R.M. Hussain and Syed Ahmad recently wrote to Chief Minister Siddaramaiah, urging the state government to grant Muslim employees a one-hour exemption from duty to facilitate prayers and iftar.

However, the Karnataka government has yet to make a decision on the request.

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