New Delhi : Bringing petrol and diesel prices under GST ambit will not benefit consumers in any way, said Finance Minister KN Balagopal on Saturday. If prices must come down, the Centre should lower cess on fuel, other claims are Modi government’s ploy to mislead the public, the minister added. There are reasons for the stance on GST adopted by Kerala and other states. Representatives across states have suggested reducing centre’s cess for lowering of fuel prices. At the GST meeting, several states opposed taking of e-products under GST too, the minister said.
It was possible for state to take firm stand on the topic. Kerala, Goa and Tamil Nadu strongly opposed raising tax on Kerosene. Several states are reeling under dire financial crisis. If state interests should remain protected, it is best to maintain the current norm. It is not appropriate to claim that fuel and alcohol prices would decrease if they be brought under GST purview. If such plans are yielded to, state governments will lose half of their current revenue to the centre, said the minister.
That’s the special feature with GST. When VAT and sales tax was levied from people, the tax revenue totaled to 14 percent. However, whatever the taxes collected now, the state is unable to secure even half of that figure. This malady is not unique to Kerala alone. Rather, U.P., Delhi and all others are stuck with the problem, the minister said.
