Skip to main content

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

By
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

Post a Comment

Popular posts from this blog

Govt’s gamble on GST cuts: What do the bond and currency markets signal?

By
  It’s not just humans who suffer from cognitive biases; markets do too. Interestingly, different financial markets exhibit distinct biases, each interpreting events through its own prism of prejudice. Take the recent announcements on GST reforms: equity markets have chosen to view them through the lens of growth, while bond and currency markets are focusing on potential macroeconomic risks—fiscal pressures and current account challenges. So, which lens captures the true pulse?Equity markets may be right in expecting GST reforms to revive consumption, which has remained lacklustre for a while. But the key question remains—will this revival come at the cost of broader macro stability?It is well known that consumption stocks have rallied since the GST rationalisation announcement. But what about bond markets? What signals are they sending since this rejig was announced from the ramparts of the Red Fort?The signs aren't encouraging. Bond prices have slumped and yields have surged sinc...
Post a Comment
Read more

Luxury carmakers urge clarity on GST rates to boost festive season sales

By
  A clear picture regarding new GST rates at the earliest will help the overall auto industry, including the luxury car segment, to regain momentum in the ongoing quarter, which generally sees enhanced sales on account of the festive season.The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss moving to a two-slab taxation.In an interaction with PTI, BMW Group India President and CEO Hardeep Singh Brar said the recent speculation about the change in GST rates has caused uncertainty in the minds of consumers.Consumer interest and demand is strong, but they (prospective buyers) have adopted a wait-and-watch approach, and this delayed decision-making is impacting new vehicle sales at a certain level, he noted."Expediting clarity on GST rates is essential to get back to speed and ensure the auto sector's contribution to economic growth during this quarter is robust," Brar stated.He also hoped that the sustainable p...
Post a Comment
Read more

Sebi proposes tighter norms for green bond third-party reviewers

By
  Sebi on Friday said it has proposed to tighten the norms to appoint independent third-party reviewers or certifiers for green debt securities to align them with requirements for other ESG-linked bonds.In a draft circular, Sebi said that the current norms for green bonds, introduced in February 2023, lack detailed requirements around reviewer independence, conflict of interest mitigation, and disclosure standards that are now in place for other ESG-linked securities under a June 2025 circular.The regulator's latest proposal seeks public comments on a revised framework that would bring parity by incorporating comprehensive criteria for third-party certifiers of green bonds on non-convertible securities.Under the proposed norms, issuers of green debt securities will need to appoint reviewers who are independent of their management, directors, and key managerial personnel. These reviewers will be remunerated in a way that prevents any conflicts of interest and possess relevant expert...
Post a Comment
Read more