Petrol prices are being raised like never before after the UPA government deregulated the Petrol price and gave the power of deciding petrol prices to the Oil Companies. The justification is that Petrol is a rich man's fuel. But this is not at all true. If that is what the govt. wants then why don't they put the burden of Diesel, Kerosene and LPG on AVIATION FUEL? We would all agree that even a sweeper NRI working in the "Gulf " is rich compared to others in India. But since the consumers of aviation fuels are private sector companies, the govt wouldn't do that, since the UPA govt. gets "funds and Donations" from these private sector companies.
We all hear that the oil companies are raising the fuel prices because the crude oil prices are rising and the value of rupee is diminishing. The price of crude oil on Jun 2010 was $75/bbl and the price of petrol was Rs.52, Now the price of crude oil is $100/bbl (33%) and the price of petrol is Rs, 70/-(40% increase). This is not justified. The oil companies have never reduced the price even though the crude oil price has reduced after April 2011.
The taxation on petrol prices are unjustified. The central and state taxes contributes to almost 50% of the total price. And this taxation induces more pressure on the poor rather than the rich citizens. See the table below.
POOR FAMILY
Average income of a middle class family : 60,000/-
Money spent on petrol every week (TVS 50) : 200/-
Money spent on petrol everty year : 200 X 54 = 10,800/-
Money given to govt as tax (almost 50% ) : 5400/-
Ratio of petrol tax on income : ~ 9%
LOWER MIDDLE CLASS FAMILY
Average income of a middle class family : 2,40,000/-
Money spent on petrol every week (HH CD 100) : 500/-
Money spent on petrol everty year : 500 X 54 = 27,000/-
Money given to govt as tax (almost 50% ) : 13,500/-
Ratio of petrol tax on income : ~ 6%
MIDDLE MIDDLE CLASS FAMILY
Average income of a middle class family : 6,00,000/-
Money spent on petrol every week (Bajaj Pulser
+ Maruthi Swift) : 1000/-
Money spent on petrol everty year : 1000 X 54 = 54,000/-
Money given to govt as tax (almost 50% ) : 27,000/-
Ratio of petrol tax on income : ~ 4.5%
UPPER MIDDLE CLASS FAMILY
Average income of a middle class family : 12,00,000/-
Money spent on petrol every week (Honda City) : 1500/-
Money spent on petrol everty year : 1500 X 54 = 81,000/-
Money given to govt as tax (almost 50% ) : 40,500/-
Ratio of petrol tax on income : ~ 3%
UPPER CLASS FAMILY
Average income of an upper class family : 1,00,00,000/- and above
Money spent on petrol every week (Skoda fabia,
toyota corolla, BMW 5, Audi A8,
Mitsubishi Pajero Etc) : 5000/-
Money spent on petrol everty year : 5000 X 54 = 2,70,000/-
Money given to govt as tax (almost 50% ) : 1,35,000/-
Ratio of petrol tax on income : ~ 1%
This classification is imaginary...the actual condition is much worse. Half of India's population earns less than Rs. 50,000/- an year. Only 25% of the population can be considered as middle class and above.
From the above calculation we can understand that the burden of tax is more on the poor than the rich.
The justification that petrol is rich peoples fuel is UNTRUE. Taxing poor people at higher rates should be stopped immediately. We should all protest to this draconian cruelty of the UPA govt. to the Citizens of India...
