New Delhi: Union Minister Nitin Gadkari, on Thursday (November 11), shared an idea on how taxes on petrol and diesel can be further slashed. The minister known for his unique ideas said that if petrol and diesel are brought under the GST regime, then taxes on petroleum products will reduce further.
He, however, pointed out that bringing petroleum products will require a collective effort from all states. The BJP leader said that Finance minister Nirmala Sitharaman will definitely try to bring petrol and diesel under GST if she gets the support of the state governments.
The Senior BJP leader said, “In the GST Council, finance ministers of states are also members. Some states are against bringing petrol and diesel under the GST regime.
“If petrol and diesel will be brought under the GST regime, then taxes on these products will be reduced and revenue of both the Centre and the states will increase,” he was quoted as saying by News Agencies.
However, this isn’t the first when someone has proposed bringing petrol and diesel under the GST regime. Early this year, the GST Council headed by Finance Minister Nirmala Sitharaman discussed the matter on the directions of the Kerala high court. The council decided not to bring petrol and diesel under GST. Bringing petrol and diesel under the GST regime could reduce the petrol prices which were at their record highs before the Centre recently reduced the excise duty on the two petroleum products.
But that would also mean a decreased revenue from the sale of petrol, diesel and other petroleum products in the country.