- Category: Miscellaneous
- #601529Presently the central excise duty on petrol and diesel is about 23%. The state VAT is 34%. That is equivalent to 57% of cost. If these items are brought under the GST with maximum rate of tax applicable, the tax will be only 28%. That means the prices will drop down by about 25%. People will definitely get benefited. But the income to Government will drop down to a large extent. Both central and state governments revenue will come down but expenses will not come down. Probably such a situation may not be acceptable to government . That is why they have excluded from the act. But People should fight for it. In no country these items are so costly. So India also should reduce the cost of these price. In india the fuel costs are high as their taxes on these two items are more than 60%.
- #601574Good question posed by the author. By giving the free hand to decide the pricing by oil companies themselves, the government has given the key to them to loot as much as possible. The oil companies were fuming that they are in loss and want to recover the cumulative losses over the years. So the government heeded to their request and the oil companies have been increasing the prices randomly. By now they might have even cleared the back logs of loss and earning profit. Why I am saying this because after introduction of daily pricing the customers are hugely benefited to the tune of more than six rupees as of today. Whereas when the government use to allow them to revise prices they have been doing so every two months or three months. Thus our monies are collected and there is no transparency. I too feel oil companies must be taxed.
'Idhuvum Kadandhu Pogum "
Even this challenging situation would ease
- #601647The Union Minister Javdekar, in a news channel interview today refused to comment on the inclusion of petrol and diesel under GST. He said that the State Governments wanted them to be excluded as they will be losing revenue. The non-inclusion of these two items defeats the very purpose of "one nation one tax" concept. The State Governments are collecting VAT at different rates.The present Government raised the excise duty on petrol from
Rs 9.20/Lt in 2014 to Rs 21.48/ Lt by June 2017. The Government of India is also not interested in losing the income.
" Be Good and Do Good "