The state government’s mid-term move to burden distressed people with additional taxes to raise money for drought-mitigating measures smacks of an insensitive approach to fiscal management. It is well accepted that luxury items are taxed higher, so that essential items can be made available at lower costs. But this time, the state has invited the public ire by levying a surcharge of R2 per litre on petrol and diesel. Do they fall in the luxury category?

In fact, a surcharge on fuel would translate to increased cost of essential commodities that are mostly transported by road. More taxes on fuel would also mean a huge loss to filling stations situated on the state borders. Vehicles exiting the state or coming in may not necessarily buy fuel from the stations in Maharashtra. Will this not incur further losses to the state exchequer?