Bharat Bandh: Offices, schools and colleges open at regular time

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"Between 2014 and now, excise duty on petrol has risen by 211.7 per cent and 433 per cent on diesel". Yadav said, "While the opposition is protesting, prices of petrol and diesel have been hiked again this morning". The tax imposed by the Centre on petrol (including customs and excise duties, and other cesses) is 52.75 per cent, and on diesel is 38.53 per cent. BS Photo by Kamlesh Pednekar Hike in petrol price on the day oppn parties protesting shows govt's insensitivity: Akhilesh Samajwadi Party supremo Akhilesh Yadav said hike in prices of petroleum products on the day opposition parties staged "Bharat Bandh' shows government's "insensitivity" towards common people. Some months it goes up and some months it comes down", he said.

"The only way taxes on oil can be brought down is by increasing non-political tax-GDP ratio". "2007 was the only year when we saw an increase in tax-GDP ratio". Of this, 50 per cent is non-oil and 50 per cent is oil.

In countries which are tax compliant, oil is taxed at a rate which is less than that in India. Till May 31, when the LDF government effected a slight cut in the sales tax on petrol and diesel, Kerala's was the sixth highest sales tax levy on both petrol and diesel. So states get Rs 30 out of Rs 42 collected as taxes.

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The state government also announced a holiday for schools and colleges in Bengaluru on Monday as a precautionary measure. The extra benefit accrued to states is Rs 3-4 per litre, he said. Two of them, rising price of crude oil and depreciation in the value of the rupee against the USA dollar, are beyond the control of government. However, on June 16, 2017, a new scheme was implemented under which prices were to be revised every morning This shift from administrative price mechanism (APM) to dynamic pricing was done to ensure that the benefit of the smallest change in global oil prices can be put into effect by dealers. The official said the four states which have supported Bharat Bandh collect high taxes themselves.

On March 1 this year, the state had secured a litre of petrol for Rs 54.60. In Kolkata, petrol costs Rs 83.61 and diesel Rs 75.68.

While fiscal deficit means expenditure higher than income, current account deficit (CAD) is the difference between inflow and outflow of foreign currency.

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