(LiveMint)
Petroleum products are unlikely to be brought under the goods and services tax (GST) in the near future, despite a few central government ministers batting for their inclusion as states are opposed to the idea at present. States are of the view that inclusion of petroleum products under GST is unlikely to reduce their prices as states have powers to levy a tax over and above the peak GST rate.
The Union finance ministry is also unlikely to push for its inclusion as it believes that states will not favour such a measure. The burden of the high fuel prices on the common man had triggered demands for a reduction in excise duties levied by the centre.
Fuel prices have been rising rapidly over the last few months. The cost of the Indian basket of crude oil rose to $77.86 a barrel on 19 September, according to Petroleum Planning and Analysis Cell. To this, taxes at the central and state levels are added, besides dealers’ commission, to arrive at the retail price. The Indian basket represents the average of Oman, Dubai and Brent crude.
