It is a fact the the petrol prices are going high everyday in India
when the prices in other countries are very low. Anybody thought about
why it is like this?. Here are my thoughts regarding this.
The basic Petrol production cost will only be around Rs 16 Per Liter. Then how is it possible to have the petrol price as high as More than Rs 70 Per Liter?. The answer is simple , the rest of the price amount is comprises of different type of taxes like center tax, excise duty , state tax etc?.
But why the government is imposing huge tax on this item?
The reason is very simple , this is one of the direct source from which the government can deduct tax directly from the consumer and the consumer has to pay the petrol price in order to proceed to the next step (ie filling the fuel and running the vehicle) as he don't have any other way.
But why is it like this and what is the root cause?
Our system is so corrupt that the Government is finding it really difficult to collect the tax directly from individuals and organizations (only very few percentage is paying tax correctly which is a fact). This task gets more challenging when it comes to a country like India where the population size is very high. So deducting tax from an item like petrol (which affects all our day to day activities from agriculture , transport to all other fields like IT) is one of the easiest methods. This also in turn affects the prices of all other items and is a cyclic process.
How to fix This Problem
AADHAR is one of the the First silent step by the Government towards fixing this problem. Once it is implemented all over India correctly, we can see the petrol prices (and other associated problems) in a steady State.
But how much time do we need to wait is another question..
Hope this observation makes sense
The basic Petrol production cost will only be around Rs 16 Per Liter. Then how is it possible to have the petrol price as high as More than Rs 70 Per Liter?. The answer is simple , the rest of the price amount is comprises of different type of taxes like center tax, excise duty , state tax etc?.
But why the government is imposing huge tax on this item?
The reason is very simple , this is one of the direct source from which the government can deduct tax directly from the consumer and the consumer has to pay the petrol price in order to proceed to the next step (ie filling the fuel and running the vehicle) as he don't have any other way.
But why is it like this and what is the root cause?
Our system is so corrupt that the Government is finding it really difficult to collect the tax directly from individuals and organizations (only very few percentage is paying tax correctly which is a fact). This task gets more challenging when it comes to a country like India where the population size is very high. So deducting tax from an item like petrol (which affects all our day to day activities from agriculture , transport to all other fields like IT) is one of the easiest methods. This also in turn affects the prices of all other items and is a cyclic process.
How to fix This Problem
AADHAR is one of the the First silent step by the Government towards fixing this problem. Once it is implemented all over India correctly, we can see the petrol prices (and other associated problems) in a steady State.
But how much time do we need to wait is another question..
Hope this observation makes sense