Bringing petrol, diesel under GST will lower prices: CM Fadnavis
Fuel prices will come down once the Center builds a consensus to bring petrol and diesel under the Goods and Services Tax (GST), Maharashtra Chief Minister Devendra Fadnavis said. "A task force is already working on reducing the fuel prices. If it (petrol and diesel) can be brought under GST, rates will come down. Maharashtra has already given its consent for it," Fadnavis said.
Other states haven't given consent yet
GST Council will also have to look into aspects like revenue losses before taking a decision, Fadnavis said. Talks are going on with finance ministers of all states, Fadnavis said, adding, "Other states have not given their consent yet." "Once petrol, diesel are brought under GST, its threshold will change, because, right now, taxes upon taxes are levied which increases rates," he said.
Daily revision of fuel prices since June last year
The Center had in June last year junked the 15-year-old practice of revising fuel rates every fortnight and introduced daily revisions. Petrol and diesel prices were raised for the 11th day in succession today as the state-owned oil firms gradually passed on to the consumer the increased cost of international oil that had accumulated since a 19-day freeze was imposed just before Karnataka elections.
Center levies excise duty on petrol and diesel
Since the time the hiatus ended on May 14, rates have gone up by Rs. 2.84/liter in case of petrol and Rs. 2.60 in diesel. The central government levies excise duty on Petrol of Rs. 19.48/liter and Rs. 15.33 on diesel. Unlike excise duty, VAT is ad valorem and results in higher revenues for the state when rates move up.
Fadnavis, however, praised PM Modi
Praising PM Narendra Modi, Fadnavis said the Center has stood behind his state government "like the Himalayas" and that all stalled projects were given a clearance under Modi's rule. "Unprecedented funds have been given... to mitigate drought problems, for irrigation purposes, to build roads. The Centre has given Maharashtra in last 4 years what was not given in the last 20 years," he claimed.
