Petrol price may come down to Rs 75 if brought under GST, says SBI Economist

Petrol price may come down to Rs 75 if brought under GST, says SBI Economist

Mumbai: Petrol price can go down to Rs 75 a litre across the country if brought under the ambit of the Goods and Services Tax (GST), but there is a lack of political will, which is keeping Indian oil product prices at one of the highest in the world, economists at SBI said on Thursday (March 4).

Diesel will come at Rs 68 a litre and the revenue loss for the Centre and states will be only Rs 1 lakh crore or 0.4 per cent of GDP, according to the calculation by the economists made under the assumption of global crude prices at USD 60 a barrel and exchange rate at Rs 73 per dollar.

At present, every state has its own way of taxing fuels, while the Centre also collects its own duties and cess. Petrol prices have touched Rs 100 per litre in some pockets of the country and concerns are being expressed about the high taxation which is making the fuels dearer.

The SBI economists said bringing petrol and diesel under the goods and services tax is an unfinished agenda of the GST framework and getting the prices under the new indirect taxes framework can help.
“Centre and states are loathe to bring crude oil products under the GST regime as sales tax/VAT (value-added tax) on petroleum products is a major source of own tax revenue for them. Thus, there is a lack of political will to bring crude under the ambit of GST,” they said.

News Source: Zee News

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