Monday, June 27, 2022

Duty reduction on petrol and diesel should lower prices of goods by 10%: CAIT

Mail News Service

Jamshedpur, May 22: The Confederation of all India traders (CAIT) has applauded the Central Government for giving big relief to the people by reducing the excise duty in the prices of petrol and diesel and said that due to this exemption the prices of the everyday items should be reduced to an average of atleast 10% and similarly prices of other commodities should also come down because the cost of transportation of raw materials will also be cheaper now which may cause lowering of prices. CAIT also added that following the footstep of central government, Jharkhand and all the states should also reduce the rates of VAT, only then the public will get good relief from inflation.

CAIT National Secretary General Praveen Khandelwal and national secretary Suresh Sonthalia described this step of the Central Government as the sensitivity of Prime Minister Modi towards the citizen of India and said that the reduction in excise duty reflects the intention of the government to give relief to the people. It is very important now to ensure that the big manufacturers should also bring down the prices of their products. It has been seen in the past that often the people of the country do not get the benefit of this type of reductions.

Khandelwal and Sonthalia said that 80% of movement of goods in the country is through road transport, which is driven by petrol and diesel. They added that raw material is transported via road to make any item and in this process road transport is used at least thrice from factory to consumer and there is huge consumption of petrol and diesel at each stage. . The government has reduced the excise duty on petrol by about 10% and on diesel by about 8%. Therefore, according to a rough estimate, this reduction should result in a reduction of about 10% in the prices of all goods, which should be directly benefited by the consumers.

CAIT national Vice President Brijmohan Agarawal said, “It has been seen in the past that whenever the government gives such exemption in taxes, the big manufacturers keep the benefit of this exemption with themselves and never reduce the prices of their goods. Whereas, on the contrary, whenever the government increases the duty on any item, the big manufacturers in no time increase the prices.”

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