HYDERABAD: Telangana finance minister Eatala Rajender said on Tuesday that the state would suffer huge financial losses if the Centre brings petrol and diesel under the ambit of Goods and Services Tax (GST).
Speaking to reporters on the sidelines of a programme, the minister said Telangana differs with some of the terms of reference issued by the 15th Finance Commission. “This (bringing petrol and diesel under GST) is not a correct decision. It would hurt the federal spirit of our country. If these products are brought under GST, state finances will be further reduced,” he said.
Liquor also should not come under GST, he added. On the current prices of petrol and diesel hovering above 80 and 70 respectively, the minister said instead of suggesting to states to reduce VAT on products, Centre should cut excise duty and bring prices down.”Most of the welfare schemes are implemented by states. We request the central government to reduce central excise, which has been continuously increased,” he said.