Jammu, Feb 20: National Democratic Party Indian (NDPI) has shown concern over petrol and diesel prices are touching new highs and several solutions are being presented in front of the government by economists and industry experts on ways to pull the plug. It will have a cascading impact on the prices of other items and lead to inflationary pressure and hurt growth. It is high time that petroleum products including petrol, diesel and aviation turbine fuel (ATF) are brought under the single nationwide Goods and Services Tax (GST) regime.
J&K UT NDPI Chief Rajesh Gupta said, “Bringing petroleum products under GST will help a lot. It is good for everyone. It is good for the economy,” He noted that the hike in the prices of petroleum products like petrol and diesel have a huge cascading effect on a number of sectors, ultimately impacting the common people, especially the poor, the most. “Fuel prices will come down once the Centre builds a consensus to bring petrol and diesel under the Goods and Services Tax (GST), Petrol and diesel prices are defined by international crude oil rates, Gupta noted. “He said bringing petrol and similar items under the GST ambit will put the consumers in a relatively better position. For instance, currently, taxes eat up to 40-50% of the petrol price you pay. Under GST, the maximum tax outflow charged is 40% (20% each is the maximum SGST or CGST). He further added, ” If petroleum crude, high- speed diesel, motor spirit (also known as petrol), natural gas and aviation turbine fuel are even charged at the current maximum tax slab of 28%, consumers will be paying a lesser price than they are presently paying for it.
Under GST, there will be a considerable price drop! Gupta said many people have criticised the government for collecting huge revenues by levying over 100 per cent taxes on petrol and over 68 per cent on diesel, at a time when people across the country are crying for some relief measures. NDPI president suggested let’s breakup the fuel cost scenario for petrol and diesel by considering the government includes transportation fuel under the highest tax slab of 28 per cent. The basic cost of fuel after it comes out of refinery is Rs 38.97 Add 28 per cent (14 per cent CGST and 14 per cent SGST) of GST in it and also the dealer commissioner of Rs 3.6, the price comes out to be around Rs 50.87. On diesel, the basic cost of fuel after it comes out of the refinery is Rs 42.97 per litre. Add 28 per cent GST, combining both CGST and SGST, to it plus Rs 2.5 per litre as dealer commission, the price comes out to be around Rs 53.3.
