Answering a question in the Lok Sabha, Shri Thakur also said that the government was ready to discuss the issue of bringing petroleum products under the ambit of Goods and Services Tax.
Minister of State for Finance Anurag Thakur said on Monday that both the Center and the states need to think about reducing taxes on petrol and diesel as their prices have risen sharply in recent weeks.
Answering a question in the Lok Sabha, Shri Thakur also said that the government was ready to discuss the issue of bringing petroleum products under the ambit of Goods and Services Tax (GST).
“The Center is ready on the idea of reducing taxes on petrol and diesel, states should also consider this,” he said.
The Center levies excise duty on petrol and diesel, while states levy VAT.
“State governments should reduce the tax on petrol, we (the Center) will also try to reduce the tax on petrol.
The minister said, “Both the Center and the states need to think about it.”
Mr. Thakur also stated that in March 2020, the price of crude oil was around $ 19 per barrel. Currently, the price of crude oil is about 65 USD per barrel.
The government was not bringing petroleum products under GST as promised by the then Finance Minister Arun Jaitley, Mr. Thakur said that no state has yet proposed for it.
“If a state feels that petroleum products should be brought under GST, the Center has no objection to discussing this,” he said.
Last month, Union Finance Minister Nirmala Sitharaman and RBI Governor Shaktikanta Das said that the Center and the states should talk to each other and seek “coordinated action” to reduce taxes on diesel and petrol.
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