‘Petrol and Diesel taxes will be reduced even further if…’ says Nitin Gadkari

Nitin Gadkari

If Petrol and Diesel as well as other petroleum products are brought under a unified, nationwide GST regime, Nitin Gadkari, a Union minister, believes that taxes will be reduced even lower and that both the Centre and the states will generate more income. If state governments back her, Finance Minister Nirmala Sitharaman will surely try to bring petrol and diesel under GST, Gadkari said while speaking virtually at the Times Now Summit, according to news agency PTI.

“In the GST Council, finance ministers of states are also members. Some states are against bringing petrol and diesel under the GST regime. If petrol and diesel will be brought under the GST regime, then taxes on these products will be reduced and revenue of both the Centre and the states will increase,” the minister said. The GST council debated the subject in September, after being requested by the Kerala high court, and ruled against bringing petrol and diesel under GST. Because the states were opposed to the proposal, the council opted to exempt gasoline and diesel from the GST. Incorporating petrol and diesel under the GST will have resulted in near-record-low rates. However, combining the current excise duty and VAT (value-added tax) into a single national rate had an impact on revenue.

Sitharaman said the Council discussed the issue only because the Kerala high court had asked it to do so but felt it was not the right time to include petroleum products under GST. “It will be reported to the High Court of Kerala that it was discussed and the GST Council felt that it wasn’t the time to bring the petroleum products into the GST,” she said following the GST council meeting. 

“The way the Centre has provided relief to the common man (by cutting excise duty on Petrol and Diesel by ₹5 and ₹10 per litre, respectively), there is an expectation that the states will also cut taxes (VAT rates) on diesel and petrol to provide relief to the common man,” Nitin Gadkari said commenting on the recent excise duty cut.

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By TIS Staffer
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