LUCKNOW: With no respite over surging fuel prices, junior Union finance minister Shiv Pratap Shukla on Wednesday said that his government was ready to bring petroleum products under the ambit of single tax regime — GST — to pass on the relief to users.
During the past two weeks, fuel prices have risen sharply to touch al alltime high, mainly due to a very high tax components, excise as well as state taxes.
“As far as the Centre is concerned, we are ready to include petrol under the Goods and Service Tax (GST) regime.
“We understand that prices are spiralling due to international price of crude but whatever is in our hand, we are sensitive to redressing those concerns,” Shukla told TOI.
With this, Shukla has joined the ranks of Union petroleum minister Dharmendra Pradhan, who, too, had offered the same solution. Shukla, who is a Rajya Sabha MP from the state, was in Lucknow on Wednesday.
He added that the GST roll-out could take place only if all state governments agree to this demand, saying it was unfortunate that states opted out of keeping both petrol and wine out of GST regime.
“State governments had requested that petroleum products and wines (alcohol) be kept out of GST regime. Besides, our common intention was to ensure a smooth roll-out of GST. Unfortunately, now we can’t bring petroleum products under the GST regime till states agree again. I hope there is a consensus among states so that we can pass on the benefits immediately to people,” he added.
The minister though agreed that both alcohol and petrol are huge revenue earners for the Centre and state governments.
According to finance ministry, Centre had earned Rs 1.5 lakh crore from petrol in 2017-18 and Rs 2.5 lakh crore in 2016-17.