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Wholesale Inflation

7/18/2018

In a severe jerk to the Indian economy the wholesale inflation has rose to 5.77 per cent in the last month of June. It is highest since December 2013. The official data revealed that large part of it driven by the almost constantly rising prices of fuel-mainly the petrol, diesel, natural gas, L.P.G and power rates. While wholesale prices on primary articles components of the index rose to 5.3 per cent in June from 2.16 per cent in May. This was not due to food price inflation which rose marginally to 1.8 per cent from 1.6 per cent over the same period. The real push upwards in wholesale inflation came from the crude petroleum- petrol, diesel, natural gas segments. The inflation surged to 48.7 per cent in June from 26.9 per cent in May. In fuel and power segments the inflation rose to 16.2 per cent from 11.2 per cent. Due to content increase and fluctuation in transport charges the manufacturing sector accelerated in June to 4.17 per cent from 3.73 per cent in May. In industrial and all other productions the transportation cost are part and parcel of cost of production. The two are inseparable in any calculation. The Modi Government heralded the G.S.T. on 1st July 2017 in the Parliament Central Hall with the President Mr Pranab Mukharjee announced its coming in force the G.S.T. by ringing a bell at 12 O’clock in night beginning the date of July 1, 2017. Its object is to create one tax slab for the whole nation, create one national market with one price of commodities throughout the India. But what irony of the situation that in the very first meeting the G.S.T. Council all the states in unisom declared that they world not agree to includes petrol, diesel, L.P.G. and other petroleum products in the G.S.T. and would remain state V.A.T. all the states itself violated the aim and objects and definition of the V.A.T. that is Value Added Tax; In recent past the petro crude price in the global market crashed to its lowest upto 43 dollar per barrel and it prices dropped in the India. But totally against the concept of central excise duty and state V.A.T. they deprived the people of India the benefit of petro price crash by raising the central excise rates and V.A.T in that proportion and in real sense the central excise and V.A.T have ceased to be Tax and it are permanent central and state revenue. The Modi Government either should being in the petro crude- the petrol, diesel, natural gas and LPG, under the orbit of the G.S.T are the G.S.T. should be withdrawn accepting and declaring the fact the one tax one national market and one prices throughout the nations not possible.

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