New Delhi: BJP leader Sushil Kumar Modi on Wednesday said it is not possible to bring petrol and diesel under the GST regime for the next eight to 10 years as it would cause an annual revenue loss of Rs 2 lakh crore to all states.
Centre and states collectively collect over Rs 5 lakh crore tax on petroleum products, Modi told the Rajya Sabha while participating in a discussion on the Finance Bill 2021.
The statement assumes significance in view of the rise in petrol price for the past over one year which even touched Rs 100 per litre in some states.
In the first reduction in rates in over a year, petrol price on Wednesday was cut by 18 paise per litre and diesel by 17 paise a litre as international oil prices tumbled to the lowest since early February.
Petrol price was cut to Rs 90.99 a litre in Delhi from Rs 91.17 per litre. Diesel now comes for Rs 81.30 a litre in the national capital, down from Rs 81.47 previously.
Rates have been reduced across the country and vary from state-to-state depending on the local incidence of taxation (VAT).
This is the first reduction in fuel prices in over a year. The prices were last reduced on March 16, 2020.
“It is not possible to bring petrol and diesel under GST regime in the next eight to 10 years because states would not be ready for an annual revenue loss of Rs 2 lakh crore (collectively by all states),” Modi told the House.
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“If petrol or diesel would be brought under the Goods and Services Tax (GST) regime then how would the loss of Rs 2 lakh crore revenue to states be recovered. The Centre and states together earn over Rs 5 lakh crore from tax on petroleum products,” he said.
He explained that if petroleum products are brought under the GST, 28 per cent tax would be collected on them as that is the highest slab in the tax regime.
“Presently, 60 per cent tax is being collected on petroleum products. This would result in shortfall of Rs 2 lakh crore to 2.5 lakh crore (to both Centre and states),” he explained in the House.
“If we collect 28 per cent tax on petroleum products, then only Rs 14 would be collected (per litre) against Rs 60 at present,” he pointed out.
“If petrol or diesel price is Rs 100 (per litre) then the tax component is Rs 60 which includes Rs 35 for Centre and Rs 25 for respective states. Besides out of the Rs 35 tax per litre, 42 per cent goes to states,” Modi added.
He also stated, “It is said that tax collected on petrol, diesel goes into the pocket of government. There is no separate pocket of government. From where the money will come for providing electricity and tap water to all households. The spending of tax collection on welfare of country is being challenged.”
Reacting to remarks against the GST regime, he said,”Some people also said that this is Gabbar Singh Tax. No state has opposed the tax structure of GST in any GST Council meeting. You can see the proceedings of the council (to verify that),” he said.
He stressed that only the government under the leadership of Prime Minister Narendra Modi had the guts to implement the GST regime in the country.
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With the Amout of taxes collected on petrol and diesel so far over the years. We should have been in a position to buy Oil fields in Middle East. But expenditure is the term……
modi chamcha is boasting that petrol and diesel cannot be bought in GST , what happened to election promises, these idiots are sucking middle class blood and looting common man pockets, selling govt public sector companies to Gujaratis like Adani and Ambani, let corona virus take away these capitalist parasites , they are behaving like east India company and looting common man money and pockets, since one year fixed deposits rate interest was dropped down, and LPG cooking gas rates raised by 300%, now Banking Regulations Amendment Act passed recently to regulate the operations of banks; to lay down audits control moratorium, mergers and liquidation; to issue directives in the interests of public good and on banking policy.
Let us put this modi government in dust bin , modi chamcha is boasting that petrol and diesel cannot be bought in GST , what happened to election promises, these idiots are sucking middle class blood and looting common man pockets, selling govt public sector companies to Gujaratis like Adani and Ambani, let corona virus take away these capitalist parasites , they are behaving like east India company and looting common man money and pockets, since one year fixed deposits rate interest was dropped down, and LPG cooking gas rates raised by 300%, now Banking Regulations Amendment Act passed recently to regulate the operations of banks; to lay down audits control moratorium, mergers and liquidation; to issue directives in the interests of public good and on banking policy, and impose penalties.
Dear all, 200% tax is high but tax collected will not go to BJP or Congress parties. It deposited for our own use. If you bring it under GST, economy will collapse and poor people will die for sure. I suggest go for electric vehicles, it’s better for you, our country and for our environment. Thanks.
We all know the calculation .But tell us why u sat on the road in 2013,called Congress names and promised sub 40 rupees petrol and diesel?
Blind tax is collected at 200% by the central and state governments on Petrol and Diesel…. cannot fool the people…. it’s like the previous governments but the reduced it this is a pure loot….
Then you and your Government is good for nothing.
BJP will lose in next election Will be SHOWN GATE by voters
If petrol & diesel could not bring under GST. Then this BJP government should bring back all the black money back to India. This promise as been given by Modi 8n his election campaign. If he is not up to his words then he is not worth to sit on PM chair. I want to know after BJP govt. came into power what there have done to middle class families. He is just giving all the poor peoples income to Corporates. Don’t trust BJP govt. & none of the politicians. In India politics is a business. Is it required the pension to politician who lost in elections. These politicians wasting our public tax payers amount for there benifits.
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