Union Minister Dharmendra Pradhan proposes bringing petroleum products under GST
What's the story
Petroleum and Natural Gas Minister Dharmendra Pradhan has requested Finance Ministry to include petroleum products under GST ambit. He said there needs to be a "uniform tax mechanism"; currently, there are two types of taxes on petroleum products: central excise and state VAT. He added the Centre and state governments should come to the consensus that petroleum goods must come under GST. Read more!
Quote
GST, a well-thought mechanism by Centre and states: Pradhan
Dharmendra Pradhan stated: "This is the proposal of the Ministry of Petroleum. We have appealed to all the states and finance ministry (to bring petroleum items under GST). Looking into the consumer interest, there must be tax rationalization. GST is a well-thought mechanism."
Projects
Centre needs money for development, welfare projects in India
Commenting on the Centre's need for funds for implementing development projects and welfare schemes in India, Pradhan said that over the last three years, the government's budgetary allocation on agriculture, irrigation, railways, roads, drinking water, healthcare, education, and housing sectors has increased. He added, "We are passing the money for the greater recycling of the economy through infrastructure projects."
Daily Price Change
Centre's daily price mechanism for petrol and diesel
Pradhan justified the daily price mechanism for petrol and diesel, adding the states are getting a share of 42% in whatever is being collected by the Centre. He said domestic prices are determined by global rates, clarifying there's no mismatch or communication gap between both the prices. He added, "Whatever is the international price we are passing exactly that to the Indian consumer."