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  • Category: Miscellaneous

    Is it right time to bring petrol prices under GST?

    After changing to daily revision of petroleum prices, the diesel and petrol prices kept on increasing. Government boasted a lot regarding GST that the entire nation should have a single tax structure. But it is going against its own campaign by keeping petroleum prices out of the purview of GST. One of the ministers will say that only the rich, who are having cars and bikes, are buying petrol and not the poor. Aren't the poor using petrol at all? Aren't the poor using public transport system?Aren't the small vendors using motor cycles? On the one hand Government is trying to keep inflation under control but at the same time it is not willing to lose its revenue from petrol? Different states have different petrol prices as it is not covered under GST. Is it right time to bring petrol prices under GST?
  • #609150
    I don't think that government will do that. From the day one, we were talking about GST to petrol and diesel. But the government is tight-lipped on that. Mainly I think the government is making a lot of money in the form of tax in this products. The taxes are more than the price of the original product. This aspect is unnoticed. Many rural people don't know this fact. In GST we all know that the maximum percentage of tax is only 28%. If they want to bring these two products also under this the government has to create a new slab wherein the tax will be 100 or 150% of the cost of the product. If it is told openly, nobody will tolerate. So from the beginning, the government is telling that these products will not be under GST. Ultimately we have to pay extra money for this product. The slogan one nation oe tax is exempted from these products. Ultimately public has pay from their nose. This the fact of life and we have to accept it and push on.
    drrao
    always confident

  • #609153
    I also support the demand of imposition of GST on petroleum products like petrol and diesel. However, I think that because of India's excessive dependence on import of petroleum products, the Government is not in a position to impose GST on petrol and diesel. But I admit that I would be very happy to be proved wrong in this case.
    Caution: Explosive. Handle with care.

  • #609178
    Neither the centre nor the states will agree for that. Oil and Liquor are the cash cow for the centre and states. These can also be used for funding parties. Hence the politicians, ministers and even administrators may say something just to please the public, but will not do anything to lessen people's burden.

    Now what we see is that all parties, irrespective of their flag and symbol difference are in unison in many things. Most of these are to the disadvantage of general middle class public. Most of those are to the advantage of multinationals and big corporate and business.
    So the people now stand without a dependable political party who sincerely take up their grievances and work to alleviate them. This leads to a sense of betrayal and helplessness. That is a sufficient climate for vested interests to exploit. That is not good for the nation. Let the political parties be aware of this.

  • #609189
    I think there is a secret pact between the government and the oil companies as the government gave them the leverage of charging daily prices citing International crude oil prices fluctuations and thus a portion of loot would be shared to government coffer. What is very annoying that the so called opposition parties which would raise the voice for even small matter are keeping quiet and the oil companies are coolly increasing the prices and making our life worse. In last fifteen days I found that petrol prices have been increased drastically. One month back when I used to put petrol for 150 rupees I used to get 2.36 quantity in the meter reading.. As I use two liters of petrol daily and when ever I fill it early morning, the quantity would reduce by three to five points. That means oil companies are looting in day light and there is no transparency in their price hike decision and we the public demand a white paper on that.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #609211
    There are several reason for not bringing oil into GST. Let us see the institutional problems in them.
    1. GST slabs are not suitable for petrol which need to be taxed at higher rate to bring down consumption of petrol to have a cap on import bill.
    2. India is building its own strategic reserves of 180 days from the present 15 days. We need billions of rupees to build the facilities and tax on petrol is the only source.
    3. International crude oil prices are at all time low and it is the right time to increase taxes so government could cash in the revenue instead of passing it to people.
    4. Petrol is carbon intensive source and hence it must be taxed higher to reduce its consumption.
    5. Government by way of it is encouraging people to move on to hydrid vehicles, electric motorcycles, public transport and car pooling systems to reduce traffic on road, reduce pollution. members must note that recently an experiment was tried in Delhi though ended in failure.
    6. Moving people instead of moving vehicles is one of the concept of Smart cities mission. So government is discourageing use of personal motor vehicles.


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