Representational image. AFP

The West Bengal government on Sunday announced a reduction of tax by Re 1 per litre on petrol and diesel effective from midnight.

According to a report by The Indian Express, state Finance Minister Amit Mitra, during a virtual news conference, said the move would provide respite to people affected by rising fuel prices, adding that he Centre earns Rs 32.90 per litre in taxes from petrol, while the state gets Rs 18.46 only. In case of diesel, the central government’s earning is Rs 31.80 per litre as against Rs 12.77 for the state, he said.

Mitra, during the press conference, said that cess accounts for a major part of the Centre’s levies in petrol and diesel, which is not shared with the state.

The Bengal government’s move comes a day after finance minister Nirmala Sitharaman said that Centre and state governments will need to figure out a mechanism to bring retail rates down to reasonable levels.

Sitharaman, was, however, non-committal on cutting taxes to give relief to consumers.

 

The Congress and other Opposition parties have been slamming the Central government for rising fuel prices, with the Congress taking out marches and observing bands at several places on Saturday as a mark of protest.