There is no problem in going for petrol and diesel GST range .. but .. ‘is the only condition imposed by PDR
Tamil Nadu Finance Minister Palanivel Thiagarajan has said that the state government is ready to reconsider bringing petrol and diesel within the GST limit if the central government imposes a cess tax on petrol and diesel prices.
An event was held in Madurai to provide push carts to 250 roadside vendors under the Deenaday Anthiyodaya Yojana.
Finance Minister PDR Palanivel Thiagarajan graced the occasion as a special guest and handed over trolleys to the beneficiaries. Also present was Madurai MP Su Venkatesh.
Petrol and diesel prices
Speaking to reporters after the event, Finance Minister PDR Palanivel Thiagarajan said, “Chief Minister Stalin has demanded that petrol and diesel prices be brought within the GST limit by 2018 itself. However, in the period between 2018 and 2024, there have been many changes in petrol, diesel prices and crude oil prices. Petrol and diesel prices remained under control, even as crude oil prices rose to $ 130 a barrel during the Congress regime. That’s all we need to consider.
Line sharing
Prior to the formation of the BJP regime, the interview tax levied in India was 55 paise and the indirect tax was 45 paise. But after the formation of the BJP government, the central BJP government reduced the interview tax to protect the interests of multinational corporations. When the BJP came to power in 2014, the tax on petrol was 10 rupees and the tax on diesel was 5 rupees. But now the petrol tax is 32 rupees and the diesel tax is 31 rupees.
GST limit
The central government has not said anything to bring petrol and diesel within the GST limit. The Central Government has pointed out the opinion of the High Court in this regard. About 20 per cent of the federal tax revenue comes from petrol and diesel. Thus, neither the central government nor the state governments want to bring petrol and diesel prices within the GST range.
Interview & Indirect Line
The tax burden on the public has doubled as the federal government has reduced taxes for the benefit of multinational corporations. In India alone, the central government collects 100 per cent of the interview tax, more than in any other country in the world. About 70 to 75% of indirect taxes go to the central government. In the current context, the states get only tax revenue from both the petrol, diesel and alcohol sectors.
Chess line
Even before the GST, state governments had a minimal right to tax. But after the GST, the central government took away that minimum right. Not only this, the central government has also kept the chess tax unallocated to the states. How can the governments in the states run the administration if the central government takes the tax revenue of the state governments?
One condition is that when the field environment in Tamil Nadu changes, the position of the DMK will change accordingly. The Government of Tamil Nadu is ready to reconsider bringing petrol and diesel within the GST limit if the Central Government imposes a cess tax on petrol and diesel prices. I mean our condition in this case is only one. If we drop the cess on petrol and diesel prices, we will fall within the GST range,”he said.