RTTNews - The Indian Government is planning to hike cess on auto fuels to step up funding for highway project proposals, reported the Economic Times. The Ministry of Roads and Surface transport has suggested a Re.1 hike in cess for auto fuel.
Highly placed government sources reportedly said that the actual hike per litre might be Re.0.50 per litre and added that the Prime Minister's office, the Finance Ministry and the Planning Commission would decide it finally. A hike of Re.0.50 per litre would bring in Rs.5,000 crore to the government, which collected about Rs.30,000 crore through cess during 2008-09.
The sources said that at present there is no need of funds as the implementation of the highway projects are proceeding at a slow pace. However, once the pace of road development picks up, then the funds required may exceed the cess collection, which explains the need for the hike.
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