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The government has said that the Centre is ready to consider the idea of reducing the tax on petrol and diesel, but the States should also consider it. This information was given by Minister of State for Finance Anurag Singh Thakur to Lok Sabha on Monday.
He said that there is no proposal at present to bring petrol, diesel and jet fuel under Goods & Services Tax (GST), but also said that Centre and States need to think about reducing taxes on petrol and diesel.“The State governments should reduce taxes on petrol.We (the Centre) will also try to reduce them,” the Minister said.
In response to a starred question, Thakur said, Article 279 A (5) of the Constitution prescribes that the GST Council shall recommend the date on which the goods and services tax be levied on crude oil, petrol, diesel, natural gas and aviation turbine fuel (ATF).
So far, the GST Council, in which the States are also represented, has not made any recommendation for inclusion of these goods under GST.
The Council may consider the issue of inclusion of these five petroleum products at a time it considers appropriate, keeping in view all the relevant factors including revenue implication.
The Centre levies excise duty on petrol and diesel at specific rate while the States levy VAT (value added tax) at ad-valorem.
In response to an unstarred question, he said that total central excise duty (including basic excise duty, cess and surcharge) on unbranded petrol was ₹19.98 a litre during January-March 2020 which rose ₹32.98 a litre during May-December 2020. Similarly, on unbranded diesel, total of central levies increased was ₹31.83 a litre during May-September 2020 as against ₹15.83 during January-March 2020.
BPCL privatisation
Replying to another unstarred question on privatisation of Bharat Petroleum Corporation Limited (BPCL), Thakur said post-disinvestment, it is expected that the strategic buyer will bring funds, technology, new management, etc. for optimum development of business potential.
“The issue of continuation of subsidised rates for specific petroleum products after disinvestment will be considered before inviting financial bids, taking into consideration the interests of customers of BPCL,” he said.
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