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After excise duty cut, Centre wants states to slash VAT by 5 per cent on fuel

"We urge states to take responsibility just like the centre did, in direction of consumer interest. If states slash VAT (on fuel) by 5%, consumers will get more relief," said Dharmendra Pradhan.

By: Express Web Desk | New Delhi | Updated: October 5, 2017 4:24 pm
petrol price, Excise duty, dharmendra Pradhan, VAT, value added tax, Tax, economy, Fuel, vat on fuel, diesel, diesel price cut, Facing heat from the Opposition over fuel prices, the Centre reduced the basic excise duty on petrol and diesel by Rs 2 per litre. (File photo)

A day after the Centre decided to slash excise duty on petrol and diesel by Rs 2, Petroleum Minister Dharmendra Pradhan on Wednesday urged the state governments to cut Value Added Tax (VAT) on fuel by 5 per cent. “We urge states to take responsibility just like the centre did, in direction of consumer interest. If states slash VAT (on fuel) by 5%, consumers will get more relief,” said Pradhan.

Facing heat from the Opposition over fuel prices, the Centre reduced the basic excise duty on petrol and diesel by Rs 2 per litre — the first time the NDA government has reduced excise duty on petrol and diesel after having raised it 11 times since November 2014. According to a statement by the Finance Ministry, the decision to cut excise duty was taken by the Government in order to “cushion the impact of rising international prices of crude petroleum oil and petrol and diesel on Retail Sale Prices of Petrol and Diesel as well as to protect the interest of common man”.

A senior Finance Ministry official had said on Tuesday that the Central government will nudge states to also reduce VAT on petrol and diesel. The duty reduction will result in an estimated revenue loss of Rs 13,000 crore during the remaining part of the financial year.

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  1. A
    Apte
    Oct 16, 2017 at 5:25 pm
    (a) States’ substantial revenue comes from tax on petroleum gods. When the States are ruled by a party other than the ruling party the State governments are often critical of increase in prices of petrol diesel etc. but they are the biggest beneficiary of price increase as their tax revenue increases too. When this is reality, is it reasonable to expect that the State governments will agree to surrender their right o levy tax on of petroleum [products like diesel, petrol, LPG etc.? (b) When UPA was in power in the Centre for ten years, Central government did not implement a policy for taxation and pricing of petroleum goods like petrol, diesel, LPG etc. Opposition parties like BJP did not also demand implementation of such a policy. (c) It is just not possible to import unlimited quan ies of crude oil. (d) Therefore, citizens should demand implementation of a long term and sensible policy for pricing and taxation of all petroleum goods at the Central and State government level.
    (0)(0)
    Reply
    1. B
      Bharat Maa
      Oct 4, 2017 at 11:51 pm
      centre cut 2 Rs and it wants states to cut 5 . how many did centre increased when fuel was cheapest in rest of the world? 11 times they increased excise duties of fuel and by cutting 2 Rs. they are only pleasing bhakts.
      (5)(2)
      Reply
      1. A
        ak
        Oct 4, 2017 at 9:40 pm
        Hiking central excise 11 times since BJP assumed power at the center in 2014 should be justifiable especially when the oil pricing is deregulated during the tenure of former congress government, therefore, when there has been a tremendous slump in the crude oil price internationally the benefit of it should be extended to the public at large by bringing down retail oil prices by at least rupee 20. This will surely vindicate the present government's pro poor pro people rhetoric.
        (10)(1)
        Reply
        1. P
          pk
          Oct 5, 2017 at 5:20 am
          That will be so stupid. Subsidizing people who drive cars, instead of spending on infrastructure, healthcare, and education. UPA spent more than 3 lakh crore every year on diesel subsidies alone. In 3 years, that was more than "10 LAKH crores" --- money that could have fixed our entire infrastructure. And that too, all from borrowing, while fiscal deficit crossed 6 .
          (1)(0)
          Reply
        2. M
          Mathura
          Oct 4, 2017 at 7:27 pm
          Your party is in power in 17 states. YOU boast about it . Ensure that at least BJPeee mahngai daayan accepts your proposal. 400 increase in excise in last 3 years is classic example of BJPeee mahngai daayan khay jaat hai.
          (20)(1)
          Reply
          1. Arun Kottur
            Oct 4, 2017 at 7:14 pm
            when centre will be ready for 100 transparency in pricing of petrol/diesel/kerosene. Or continue to fool common man on this issue also.
            (11)(0)
            Reply
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