Increased prices of petrol and diesel have caused great problems for the common people. Due to this, the common man has to bear the brunt of inflation. Petrol prices in the four metros of Delhi, Mumbai, Chennai, Kolkata have crossed Rs 90 per liter. Amidst the increased prices of petrol and diesel, there is a demand to bring them under the Goods and Services Tax (GST) once again. According to experts, if petrol and diesel are kept at a higher rate of GST, then the current prices may be reduced to half.
According to the news, the central government is considering this. Finance Minister Nirmala Sitharaman and Petroleum Minister Dharmendra Pradhan have also indicated in this regard. At present, both fuels attract Central Government Excise and State Governments VAT. Its effect is that petrol of Rs 35 has gone up to Rs 90-100 per liter in various states.
The central government levies an excise duty of Rs 32.98, and Rs 31.83 a liter on petrol and diesel respectively. While both of these are also the main sources of fuel earnings for the state government. While implementing GST, both these fuels were kept out of their purview by the government.