Skip to main content

Inclusion of petrol and diesel in the GST will help consumers pay a rational price: Dharmendra Pradhan

Inclusion of petrol and diesel in the GST will help consumers pay a rational price: Dharmendra Pradhan
An inclusion of petrol and diesel in the Goods and Services Tax framework will help consumers pay a rational price for the fuel, Oil Minister Dharmendra Pradhan has said after fuel prices rose to record level prompting demand for tax cuts.
Following a rapid rise in the international rates to which local prices are linked, diesel is selling at record rates in the country and petrol at four-year peak. On Monday, diesel was sold for Rs 64.69 per litre and petrol for Rs 73.83 a litre at Indian Oil outlets in Delhi.Petrol and diesel prices have gained Rs 10.74 and Rs 11.36 per litre respectively in the last nine months in which crude oil has gained $21.87 per barrel to about $70/barrel.
Heavy duties imposed by the Centre and states is key to petrol and diesel being so expensive in the country. In Delhi, petrol bear about 100% and diesel 69% levies comprising excise duty and VAT, according to the latest data published by the Oil Ministry’s petroleum planning and analysis cell.“There can be no knee-jerk reaction on economic policies,” Pradhan said on demand for tax cuts to bring down fuel prices for consumers while arguing that fuel taxes were needed to fund development work. He also defended market pricing mechanism for petrol and diesel
“For consumers to get rational price mechanism, the petroleum products will have to be brought into the GST mechanism,” he said, without elaborating how inclusion in GST will make petrol and diesel cheaper.The highest rate of tax applicable to products under GST is 28%. Since fuel sale is a major source of revenue for states as well as Centre, it’s difficult to imagine them agreeing to cut rates sharply on petrol and diesel.Petrol, diesel, natural gas, crude oil and jet fuel are currently not included in GST.

The Economic Times, New Delhi, 03rd March 2018

Comments

Popular posts from this blog

New income tax slab and rates for new tax regime FY 2023-24 (AY 2024-25) announced in Budget 2023

  Basic exemption limit has been hiked to Rs.3 lakh from Rs 2.5 currently under the new income tax regime in Budget 2023. Further, the income tax slabs in the new tax regime has been changed. According to the announcement, 5 income tax slabs will be there in FY 2023-24, from 6 income tax slabs currently. A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs.5 lakh to Rs.7 lakh. Thus, individuals opting for the new income tax regime and having an income up to Rs.7 lakh will not pay any taxes   The income tax slabs under the new income tax regime will now be as follows: Rs 0 to Rs 3 lakh - 0% tax rate Rs 3 lakh to 6 lakh - 5% Rs 6 lakh to 9 lakh - 10% Rs 9 lakh to Rs 12 lakh - 15% Rs 12 lakh to Rs 15 lakh - 20% Above Rs 15 lakh - 30%   The revised Income tax slabs under new tax regime for FY 2023-24 (AY 2024-25)   Income tax slabs under new tax regime Income tax rates under new tax regime O to Rs 3 lakh 0 Rs 3 lakh to Rs 6 lakh 5% Rs 6

Jaitley plans to cut MSME tax rate to 25%

Income tax for companies with annual turnover up to ?50 crore has been reduced to 25% from 30% in order to make Micro, Small and Medium Enterprises (MSME) companies more viable and also to encourage firms to migrate to a company format. This move will benefit 96% or 6.67 lakh of the 6.94 lakh companies filing returns of lower taxation and make MSME sector more competitive as compared with large companies. However, bigger firms have shown their disappointment since the proposal for reducing tax rates was to make Indian firms competitive globally and it is the large firms that are competing globally. The Finance Minister foregone revenue estimate of Rs 7,200 crore per annum for this for this measure. Besides, the Finance Minister refrained from removing or reducing Minimum Alternate Tax (MAT), a popular demand from India Inc., but provided a higher period of 15 years for carry forward of future credit claims, instead of the existing 10-year period. “It is not practical to rem

Don't forget to verify your income tax return in August: Here's the process

  An ITR return needs to be verified within 120 days of filing of tax return. Now that you have filed your income tax return, remember to verify it because your return filing process is not complete unless you do so. The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V. Taxpayers who filed returns by July 31, 2023 but forget to verify their tax returns, will get the following email from the tax department, as per ClearTax. If your ITR is not verified within 30 days of e-filing, it will be considered invalid, and may be liable to pay a Late Fee. Aadhaar OTP | EVC through bank account | EVC through Demat account | Sending duly signed ITR-V through s