The Evening Wrap: Centre bearing entire fuel tax cut burden, says Nirmala Sitharaman

The entire cost of the fuel price cut announced on Saturday will be borne by the Centre, Union Finance Minister Nirmala Sitharaman said, noting that the reduction will be from the Road & Infrastructure Cess (RIC) component of the taxes levied on petroleum products. She said that Basic Excise Duty, a component that the Centre shares with the States, would remain the same and so the burden will only be on the Centre. Remarks from the minister came after some States and Opposition leaders, including former Union Finance Minister P. Chidambaram and Tamil Nadu Finance Minister Palanivel Thiaga Rajan, criticised her for calling on the States to follow suit and reduce State-levied taxes on fuel. Further, Ms. Sitharaman also said that the latest tax reduction and the one announced in November 2021 will together cost the Centre Rs 2,20,000 crore a year. “The duty reduction made yesterday has an implication of ₹ 1,00,000 cr a year for Centre. The duty reduction made in November’21 has an implication of Rs 1,20,000 cr a year for Centre,” she tweeted. RBI data shows total developmental expenditure incurred from 2014 to 2022 was ₹90.9 lakh crore. In contrast, only ₹49.2 lakh crore was spent on developmental expenditure during 2004-2014, she also said. BJP Barrackpore MP Arjun Singh returns to Trinamool Congress Arjun Singh, BJP MP from Barrackpore, West Bengal, joined the Trinamool Congress in the presence of the party’s general secretary Abhishek Banerjee and other senior leaders. “I have returned home. I have been associated with the party (TMC) since its foundation in 1998,” Mr. Singh said. He said he wanted to fight for the interest of all stakeholders of the Jute industry, hailing TMC supremo and Bengal Chief Minister Mamata Banerjee as one who can lead the struggle. Responding to questions if he will resign as a MP, he said that two TMC MPs who joined the BJP recently had not resigned and said he will resign the day they will. TMC flags replaced BJP flags and posters at the MP’s residence and party offices. Notably Mr. Singh had quit the TMC in 2019 just before the Lok Sabha elections after he was denied a ticket. He then contested from Barrackpore on a BJP ticket and won against TMC’s Dinesh Trivedi. Before crossing over to BJP, Arjun Singh was elected to West Bengal Assembly four times as TMC representative. A series of political violence, some with communal overtones, were triggered in Barrackpore after Mr Singh’s defection to BJP in 2019. He was appointed vice president of BJP’s Bengal unit. However, over the past few weeks, he was vocal against the policies of the Centre particularly pertaining to the Jute industry. PM Modi to attend U.S.-Indo Pacific Economic plan launch in Tokyo, meet Quad leaders Prime Minister Narendra Modi will attend U.S. President Joe Biden’s unveiling of the “Indo-Pacific Economic Framework” (IPEF) in Tokyo on Monday, a US initiative for trade partnerships in the region, sources confirmed. After landing in Tokyo on Monday, PM Modi is expected to meet Japanese business leaders in one-on-one interactions including heads of NEC corporation, Uniqlo garments, Suzuki motors, and the SoftBank Group, attend the IPEF event with Mr. Biden and other leaders, and also attend a business roundtable. On Tuesday he will meet with US President Joseph Biden, Japanese PM Fumio Kishida and the just-elected Australian PM Anthony Albanese for the Quad summit after which he will hold bilateral talks with each of them. Mr. Modi’s attendance at the event is a significant step towards building economic ties amongst Quad countries in the Indo-Pacific, although officials were hesitant to bill the IPEF as a counter the 15-nation Regional Comprehensive Economic Partnership (RCEP) and the 17-nation Trans-Pacific Partnership (TPP) that China is a member of. India has not taken a decision on joining the framework, but is keen to understand the “contours” of the American plan, an official said, confirming that Indian delegates would join the launch of negotiations expected on Monday as well. Foreign Secretary Vinay Kwatra had said that “discussions and the conversations are still going on” on the IPEF draft. In the past week, India has also run up against the US and Japan at G-7 meetings, as well as at the UN Security Council over its decision to ban wheat exports amidst global shortages of Ukrainian wheat. U.S. doesn’t single out India on human rights: NSA Sullivan Ahead of the bilateral meeting between PM Modi and President Biden, U.S. National Security Adviser Jake Sullivan said the United States doesn’t “single India out” on issues of human rights and ensuring fundamental freedoms. During a briefing onboard the flight to Tokyo, Mr. Sullivan was asked by a reporter how the U.S. administration “balances” engaging economically with Mr. Modi, given what the reporter called accusations of “human rights abuses” and the alleged targeting of minorities. “President Biden has been clear from the beginning of this administration that we’ll speak out when we see any form of departure from or deviation from basic principles, fundamental freedoms, human rights, the values of democratic institutions, and the rule of law,” Mr. Sullivan said. “That’s true for a range of countries. And, you know, we don’t single India out,” he added. The U.S. had “found a way” to pursue practical cooperation with countries that were democratic and non-democratic, “while at the same time being clear and consistent of where American values lie,” he said. Asked about India and the U.S.’s differences over Russia, where India has abstained from all resolutions seeking to criticise the invasion in Ukraine, and continues economic and oil trade with Moscow, Mr. Sullivan said that would be part of the bilateral talks, stressing that he expects the talks to be “constructive and straightforward” as previous private exchanges between Mr. Biden and Mr. Modi have been, while “talking through” all the issues on the bilateral agenda. Houses of 5 persons accused of setting ablaze Assam police station demolished The authorities in central Assam’s Nagaon district on Sunday demolished the houses of five persons suspected to have been among those who set a police station ablaze on Saturday after the alleged custodial death of a fish trader. Bulldozers and excavators were used to flatten the houses of the suspected arsonists in the Salbabari area of the district. Special Director-General of Police G.P. Singh told journalists that investigation revealed some of the suspects had encroached upon land and acquired possession with forged documents. The eviction drive was carried out after a case was registered against them, he said. The affected people claimed their houses were not illegal structures. In Brief Jammu and Kashmir pace sensation Umran Malik earned an expected call-up in the Indian team for the upcoming five-match T20 International home series against South Africa starting on June 9. Along with Umran, Punjab Kings’ death overs specialist Arshdeep Singh has also earned his maiden national call-up. Meanwhile Rohit Sharma, Virat Kohli, pacers Jasprit Bumrah and Mohammed Shami have all been rested for the limited overs series in which Rishabh Pant will be the vice-captain. Evening Wrap will return tomorrow [logo] The Evening Wrap 22 MAY 2022 [The Hindu logo] Welcome to the Evening Wrap newsletter, your guide to the day’s biggest stories with concise analysis from The Hindu. [[Arrow]Open in browser]( [[Mail icon]More newsletters]( Centre bearing entire fuel tax cut burden, says Nirmala Sitharaman The entire cost of the fuel price cut announced on Saturday will be borne by the Centre, [Union Finance Minister Nirmala Sitharaman said]( noting that the reduction will be from the Road & Infrastructure Cess (RIC) component of the taxes levied on petroleum products. She said that Basic Excise Duty, a component that the Centre shares with the States, would remain the same and so the burden will only be on the Centre. [Scene at a petrol pump in Jalandhar on May 21, 2022. The total revenue implication to Centre on these two duty cuts is ₹2,20,000 crore a year, the Finance Minister noted. ] Remarks from the minister came after some States and Opposition leaders, including former Union Finance Minister P. Chidambaram and Tamil Nadu Finance Minister Palanivel Thiaga Rajan, criticised her for calling on the States to follow suit and reduce State-levied taxes on fuel. Further, Ms. Sitharaman also said that the latest tax reduction and the one announced in November 2021 will together cost the Centre Rs 2,20,000 crore a year. “The duty reduction made yesterday has an implication of ₹ 1,00,000 cr a year for Centre. The duty reduction made in November’21 has an implication of Rs 1,20,000 cr a year for Centre,” she tweeted. RBI data shows total developmental expenditure incurred from 2014 to 2022 was ₹90.9 lakh crore. In contrast, only ₹49.2 lakh crore was spent on developmental expenditure during 2004-2014, she also said. BJP Barrackpore MP Arjun Singh returns to Trinamool Congress [Arjun Singh, BJP MP from Barrackpore, West Bengal, joined the Trinamool Congress]( in the presence of the party’s general secretary Abhishek Banerjee and other senior leaders. “I have returned home. I have been associated with the party (TMC) since its foundation in 1998,” Mr. Singh said. He said he wanted to fight for the interest of all stakeholders of the Jute industry, hailing TMC supremo and Bengal Chief Minister Mamata Banerjee as one who can lead the struggle. Responding to questions if he will resign as a MP, he said that two TMC MPs who joined the BJP recently had not resigned and said he will resign the day they will. TMC flags replaced BJP flags and posters at the MP’s residence and party offices. Notably Mr. Singh had quit the TMC in 2019 just before the Lok Sabha elections after he was denied a ticket. He then contested from Barrackpore on a BJP ticket and won against TMC’s Dinesh Trivedi. Before crossing over to BJP, Arjun Singh was elected to West Bengal Assembly four times as TMC representative. A series of political violence, some with communal overtones, were triggered in Barrackpore after Mr Singh’s defection to BJP in 2019. He was appointed vice president of BJP’s Bengal unit. However, over the past few weeks, he was vocal against the policies of the Centre particularly pertaining to the Jute industry. PM Modi to attend U.S.-Indo Pacific Economic plan launch in Tokyo, meet Quad leaders Prime Minister [Narendra Modi will attend U.S. President Joe Biden’s unveiling of the “Indo-Pacific Economic Framework” (IPEF) in Tokyo]( on Monday, a US initiative for trade partnerships in the region, sources confirmed. After landing in Tokyo on Monday, PM Modi is expected to meet Japanese business leaders in one-on-one interactions including heads of NEC corporation, Uniqlo garments, Suzuki motors, and the SoftBank Group, attend the IPEF event with Mr. Biden and other leaders, and also attend a business roundtable. On Tuesday he will meet with US President Joseph Biden, Japanese PM Fumio Kishida and the just-elected Australian PM Anthony Albanese for the Quad summit after which he will hold bilateral talks with each of them. Mr. Modi’s attendance at the event is a significant step towards building economic ties amongst Quad countries in the Indo-Pacific, although officials were hesitant to bill the IPEF as a counter the 15-nation Regional Comprehensive Economic Partnership (RCEP) and the 17-nation Trans-Pacific Partnership (TPP) that China is a member of. India has not taken a decision on joining the framework, but is keen to understand the “contours” of the American plan, an official said, confirming that Indian delegates would join the launch of negotiations expected on Monday as well. Foreign Secretary Vinay Kwatra had said that “discussions and the conversations are still going on” on the IPEF draft. In the past week, India has also run up against the US and Japan at G-7 meetings, as well as at the UN Security Council over its decision to ban wheat exports amidst global shortages of Ukrainian wheat. U.S. doesn’t single out India on human rights: NSA Sullivan Ahead of the bilateral meeting between PM Modi and President Biden, U.S. National Security Adviser Jake Sullivan said the [United States doesn’t “single India out” on issues of human rights]( and ensuring fundamental freedoms. During a briefing onboard the flight to Tokyo, Mr. Sullivan was asked by a reporter how the U.S. administration “balances” engaging economically with Mr. Modi, given what the reporter called accusations of “human rights abuses” and the alleged targeting of minorities. “President Biden has been clear from the beginning of this administration that we’ll speak out when we see any form of departure from or deviation from basic principles, fundamental freedoms, human rights, the values of democratic institutions, and the rule of law,” Mr. Sullivan said. “That’s true for a range of countries. And, you know, we don’t single India out,” he added. The U.S. had “found a way” to pursue practical cooperation with countries that were democratic and non-democratic, “while at the same time being clear and consistent of where American values lie,” he said. Asked about India and the U.S.’s differences over Russia, where India has abstained from all resolutions seeking to criticise the invasion in Ukraine, and continues economic and oil trade with Moscow, Mr. Sullivan said that would be part of the bilateral talks, stressing that he expects the talks to be “constructive and straightforward” as previous private exchanges between Mr. Biden and Mr. Modi have been, while “talking through” all the issues on the bilateral agenda. Houses of 5 persons accused of setting ablaze Assam police station demolished The authorities in central Assam’s Nagaon district on Sunday [demolished the houses of five persons suspected to have been among those who set a police station ablaz]( on Saturday after the alleged custodial death of a fish trader. [An earthmover during an eviction drive carried out by district administration after incidents of violence in Assam’s Nagaon district on May 22, 2022. Some miscreants set the Batadrava police station on fire after the alleged custodial death of a person on May 21, 2022. ] Bulldozers and excavators were used to flatten the houses of the suspected arsonists in the Salbabari area of the district. Special Director-General of Police G.P. Singh told journalists that investigation revealed some of the suspects had encroached upon land and acquired possession with forged documents. The eviction drive was carried out after a case was registered against them, he said. The affected people claimed their houses were not illegal structures. In Brief Jammu and Kashmir pace sensation [Umran Malik earned an expected call-up in the Indian team]( for the upcoming five-match T20 International home series against South Africa starting on June 9. Along with Umran, Punjab Kings’ death overs specialist Arshdeep Singh has also earned his maiden national call-up. Meanwhile Rohit Sharma, Virat Kohli, pacers Jasprit Bumrah and Mohammed Shami have all been rested for the limited overs series in which Rishabh Pant will be the vice-captain. Evening Wrap will return tomorrow  Today’s Top Picks [[Centre mulls spending over ₹2 lakh crore to fight inflation, say sources] Centre mulls spending over ₹2 lakh crore to fight inflation, say sources]( [[Places of Worship Act won’t apply in Krishna Janmabhoomi case: Mathura court] Places of Worship Act won’t apply in Krishna Janmabhoomi case: Mathura court]( [[State teams pitch tent at Davos for World Economic Forum] State teams pitch tent at Davos for World Economic Forum]( [[Controversy erupts over ground survey near Puri Jagannath temple] Controversy erupts over ground survey near Puri Jagannath temple]( Copyright @ 2021, THG PUBLISHING PVT LTD. 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