Ahmedabad/Gandhinagar: Amid outcry over spiraling fuel prices Petroleum Minister Dharmedra Pradhan today reiterated his suggestion that for the benefit of all involved including customers Petroleum products should be brought under the purview of the Good and Services Tax (GST).

He also said that the increase in the price of crude owing to two devastating hurricanes in America has caused the recent rise in the prices of Petrol and Diesel. To a query Pradhan also said that taxes were necessary for developmental works and one can’t wish for development without any tax being levied. He said that tax on petroleum products was not a ‘hidden’ one.

Pradhan, who came on a day long Gujarat visit to participate in various events including the inauguration of Pradhan Mantir LPG Panchayat, told newsmen that only one type of tax on petroleum products across the country would be a very good thing and would bring parity in prices. The uniform tax mechanism will benefit the customers as well.

He said that a proposal has been given to the GST council to include the petroleum products in the ambit of this tax for this purpose. ‘If it is brought under the ambit of GST, it would be beneficial for both center as well as states,’ he said.

To a query regarding the rising prices of petrol/diesel, Pradhan said that it has seen marginal lowering in last couple of days and would come down ultimately. ‘Don’t we need good roads, schools, clean drinking water and other amenities. The expenses in the field of rural development, education etc has increased three fold. We can not have ‘Laadu’ in both hand (ie see the fruits of development and not pay tax). The taxes were not levied in a hidden manner. It was all open and transparent,’ he said.

Notably it was not for the first time that he has given such suggestion but many state including some BJP ruled ones are opposing it.

States say the move would adversely impact their revenue, which has increased by almost 50% for most states in the past three years on account of high value added (VAT) tax.

Consumers pay more than 100% tax –central and state levies combined — on petrol and diesel which actually cost only around Rs 29 after refining.

The Centre levies excise duty of Rs 21.14 on petrol and Rs 17.33 on diesel and the states imposes value added tax that ranges between 20-47%.

Earlier he had said that he had appealed to all the state finance ministers to bring petroleum items under GST in the interest of consumers.

Pradhan today inaugurated, Skill Development Institute, Ahmedabad as part of National Skill Development Mission of Government of India by ONGC in association with other Oil. He will also participate in the 6 th convocation ceremony of PDPU this evening.

DeshGujarat