New Delhi, First Published Apr 30, 2022, 10:11 AM IST
Federal Petroleum Minister Hardeep Singh Puri has said that the central government would be happy to bring petrol and diesel under the GST, but state governments do not want to.
Tax increase
As states levy VAT and federal excise duty on petrol and diesel, the tax is higher than the production price of petrol and diesel. People also pay taxes that are one time higher than the actual price.
But if petrol and diesel are brought under GST, it will end up with a tax and the price will go down. But not only the ruling states but also the BJP-ruled states are opposed to the introduction of petrol and diesel under the GST. They are opposed to bringing petrol and diesel under the GST as it will severely affect the tax revenue of the states.
In this context, Union Petroleum Minister Hardeep Singh Puri gave an interview to a news agency yesterday. Then he said:
GST
As far as I understand, if petrol and diesel are brought under GST, the Central Government will be happy. But the problem is that state governments are reluctant to bring fuels into the GST. Do not want to lose revenue from alcohol, petrol and diesel. But as the debt burden increases they will blame others. Punjab is an example of this.
Realization of responsibility
A state government must realize its responsibility. We need to reduce the VAT on petrol and diesel and reduce the burden on the people. Prime Minister Modi is consistent in this and wants the federal philosophy to work better in the livelihood of the people. Burdening is not the same for federal and state governments. At the same time, the central government acts responsibly, but the states and governments need to act responsibly in the petrol and diesel affairs.
Low prices under the Modi regime
We are not yet free from the plague. We are still feeding and vaccinating 80 crore people. Crude oil prices rose $ 19.56 a barrel to $ 130 a barrel due to military action in Ukraine. The central government has imposed an excise duty of Rs 32 on petrol and diesel but has now reduced it.
Petrol and diesel prices have come down under Modi’s rule. Just 30 percent, not 80 percent. The basic income of the people has increased in the last 10 years. The government has also announced free programs in various schemes.
Price difference
VAT levied in BJP-ruled states is about half of the VAT levied in BJP-ruled states. The retail price will vary from Rs 15 to Rs 20 per liter in BJP-ruled states and opposition-ruled states.
Thus said Hardip Puri
Last Updated Apr 30, 2022, 10:11 AM IST