New Delhi: Oil minister Dharmendra Pradhan on Monday said he has requested the finance ministry to bring petroleum products under the ambit of the Goods and Services Tax (GST) in the interest of consumers.
Pradhan said that there has to be a "uniform tax mechanism" all over the country for Petroleum products.
"This is the proposal of the Ministry of Petroleum. We have appealed to all the states and finance ministry (to bring petroleum items under GST). Looking into the consumer interest, there must be tax rationalisation. GST is a well thought mechanism by the Government of India and the states, they developed the GST Council. There are two kinds of taxes (on petroleum products). One is the central excise and the other one is state VAT. That is the reason we are expecting uniform tax mechanism from the industry point of view," Pradhan told PTI.
"There is no communication gap or mismatch (between domestic and global prices). Whatever is the international price we are passing exactly that to the Indian consumer. When it is increasing, we have to increase, when it is declining we have to decrease it. That is the practice in the country."
The minister for petroleum and natural gas said, "42% of the central tax is coming to states. And states have their own tax mechanism. So a substantial portion of tax collection is utilised and coming to the states."
He said the Centre needs funds for implementing various development and welfare projects in the country.
"Where do you get the money from? Do you think (we) have kept the money in the treasury. We are passing the money for the greater recycling of the economy through infrastructure projects," he explained.
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