The Madhya Pradesh has imposed fifty paise cess on per litre of petrol and diesel. This has negated its own slashing of VAT on these two items three months back. There were country-wide hue and cry when prices of petrol and diesel soared high and the Central Government asked the State to slash taxes on it.
Although just for explanation it is 50 paise per litre, but entire heavy vehicles trucks, buses and other also move on full tank fuel. The transportation charges will also go up resulting price rice in every commodity.
In the election year the Chief Minister Mr.Shivraj Singh Chouhan wants to show development by constructions of new roads. The Public Works Department has estimated the expenditure of 2000 crores of rupees. By the petroleum cess the State will get 200 crores and regular flow-in of cess money.
But with the price rise of commodities the people will lose Rs.1000 crores. The petrol and diesel are most costly in Madhya Pradesh as and this cess should not have been imposed. It is imposed with eye on election and it is obviously an election cess on public.