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  • Category: Miscellaneous

    Do you think all state govt should reduce the vat of petrol diesel?

    Why isn't the state government earning full VAT under their custody after reducing the prices of petro products by the central? This question is on everyone's face today. However, many states have reduced VAT. So the price of petrol-diesel has varied in different places. In this expensive market, the state government should reduce the amount of VAT. We know that the government gives subsidies in different sectors and this is how the amount of subsidy is recovered. Since petrol diesel is used as fuel, if its price goes up, it will affect the prices of other commodities also. Your comments, please.
  • #746497
    Definitely, all state governments should also reduce the taxes on petroleum products on par with the central government. Many states already reduced the taxes to some extent. Mainly all those states are ruled by BJP. That means BJP as a party has taken a decision to reduce the taxes to some extent as the rates are going very high.
    The Telangana government has not reduced the taxes. At the same time, the Chief Minister of the State is asking the Central government to further reduce the prices. He says the State government is not having any chance to reduce the prices. In Andhra Pradesh also there is no reduction.
    I feel these commodities also should be brought under GST by fixing the maximum slab as tax percentage. But that is not being done and I heard that the State governments are not accepting this proposal as the revenue loss for the governments will be very high. But the governments should think about the common man also.

    always confident

  • #746500
    If you go through the price build up list of the country on petrol price you would be astonished to note that the basic price is mere rupees 29.70 paisa out of which the central tax added to rupees 33.00, where as the state tax of vat varies across 25/00 extra, Andhra Pradesh also charges 25.00 extra, Odisha charges the least of rupees 20.60. And in our state Telangana the state govt charges 22.70 extra to which KCR has categorically denied any revision of petrol vat charges. The dealer commission across the country is the same which works out to rupees 3.69. So when each state is earning a whooping among on petrol, how can the blame game be only on the central govt and some states are yet to reduce the price. As on today the lowest petrol price across the country is in Karnataka and highest being in Maharastra.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #746502
    Whenever the price of a commodity shoots up especially an important commodity like petrol and diesel, it is the duty of the Govt, central as well as states, to reduce the taxes or get the commodity imported at the cheaper price or increase subsidy on it. This is a crucial matter because the price rise of these important fuel items will start a spiralling effect on the price of other items and soon we will be trapped in the vicious cycle of price rise. Why Govt (central or state) could not wake up to this important thing is not understood. If there were some compelling reasons then the subsidies could be increased. These type of price rises create turmoil in the business world and many transport service providers are going through a tough time due to this price rise. States should further cut down on the VAT to give relief to the business community. This is an unprecedented situation and requires a quick solution.
    Knowledge is power.

  • #746503
    The Telangana Chief Minister gave a fitting reply to the demand that State governments also need to reduce taxes on petrol and diesel. According to a news report in The Times of India, the Telangana Chief Minister said "We have not hiked VAT. We have not increased even a paisa so the question of reduction does not arise. Ever since the TRS government was formed, VAT has not been increased. Which fool will ask us to decrease (VAT)? The fool who increased it will have to reduce it,"
    It is the Union government that increased the cess and they have to further decrease it. When the State governments did not increase the VAT, why should they now decrease it?

    " Be Good and Do Good "

  • #746528
    In every aspect, it seems there is a tussle among the political parties. From the replies of some members, it is understood that the states ruled by the BJP have reduced VAT and according to KVRR the Telangana CM gave a suitable reply for not reducing the VAT. The question is not about politics. I do not think the prices of fuel have increased to fill the pockets of the ministers. The reasons must be found and have to be addressed so that the prices remain within the reach of the common men. The welfare of the people has to be in the mind of every government, be it the state or the centre. Unfortunately, for many political parties, the main concern is the vote bank and not the welfare or price rise. The state government must look into the welfare of its people and take suitable measures to that effect.

    "Life is easier when you enjoy what you do"

  • #746530
    There is a lot to know about how the taxes or cess on petroleum products are collected and how they will be shared among all the State governments. I will come up with the relevant figures tomorrow. It is all politics. I will explain in my next post.
    " Be Good and Do Good "

  • #746543
    I am quoting the following figures from an article by the Finance Minister of Kerala. The basic excise duty on petroleum products is Rs 1.40/ and the rest of the taxes are collected as special additional excise duty and cess which would not go to the pool from which the State governments get a share. Rs 3.72 lakh crore was collected by the Union Government during 2020-21 as revenue on petroleum products. Of this amount Rs 18000/ crore is collected as basic excise duty. Around Rs 2.3 lakh crore is collected as cess and the rest of the Rs 1.2 lakh crore is collected as special additional excise duty. The basic tax component of Rs 18000 crore is 4.8% of the total revenue from petroleum products. The divisible pool with the States is only 41% of the Rs 18000/ crore. The cess and additional excise duty constitute around 95% of the total revenue from petroleum products which are not be shared with State Governments. The Union Government is pocketing a major portion of the revenue from petroleum products. Then what is the justification for asking the State Governments to reduce VAT on petroleum products? It is for the Union Government to reduce bulk of the excise duty and also to bring the petroleum products under GST.
    " Be Good and Do Good "

  • #746551
    @746503 when the state was already charging huge VAT when compared to other states, Telangana CM KCR observations that he has not increased the same and need not reduced it. But his adamant has been noted by the voters who are the vehicle users at large and they would teach him the lesson. Instead being adamant if some amount was reduced, then that would have been a cooperation mode between the center and state and by being adamant the CM gone head strong and that is the reason being so his party getting into losing modes in elections. And the center has not increased, it was the oil companies has done and the government has to part with the VAT by way of discount to the road users and not knowing this the people are talking against the center. One thing is sure all days are not favorable and the TRS need to be taught lesson.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

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