Government's U-turn on petrol-diesel GST? In the Rajya Sabha, Sushil Modi said, it is not possible for the next 8-10 years

New delhi date. Wednesday 24 March 2021

During the debate on Finance Bill-2021 in Parliament, Finance Minister Nirmala Sitharaman said in the Lok Sabha on Tuesday that the government was ready to bring petrol-diesel under GST on state proposals but on Wednesday in the Rajya Sabha, BJP MP Sushil Kumar Modi said this was not possible for next 8-10 years. .

60% tax on petrol-diesel

In the Rajya Sabha, Sushil Kumar Modi said that at present there is a tax of Rs 60 per 100 on petrol-diesel. Of which 35 rupees from the central government and 25 rupees from the state government. Not only that, out of Rs 35 crore from the Center, 42% goes to the state government.

Talk about bringing in GST

He said he has been associated with the GST conference. It is often said to bring petrol-diesel under GST. They want the House to know where the revenue loss of Rs 2 lakh crore will come from if petrol and diesel are included in the GST. Both the Center and the state collect Rs 5 lakh crore annually from this, where will it be reimbursed?

How states compensate for losses

Sushil Modi said that the highest tax slab in GST is 28%. We are currently levying 60% tax on petrol-diesel. If there is a loss of revenue of two to two and a half lakh crore rupees, where will it be compensated? If we take this into GST, the Center will get Rs 14 and the states only Rs 14. It is not possible to bring petrol-diesel under GST for 8 to 10 years. Neither the Congress-ruled state nor the BJP-ruled state will be ready for this.

Corporate tax is equal to that of the world, why not on petrol-diesel.

Earlier during the debate on the Finance Bill in the House, Congress MP Dipinder Singh Hooda said, "You say corporate tax should be equal to the world so that our companies can compete. But when corporate tax should be equal to the world, why shouldn't the tax on petrol-diesel be equal to the world?" .

A similar tax on Mukesh Kumar-Mukesh Ambani

Deepinder Hooda said that direct tax system brings equality in the country. In which you can differentiate between income tax and corporate tax while indirect tax has more debts to the poor. Mukesh Kumar and Mukesh Ambani have to pay the same tax on petrol. Your government has been reducing corporate taxes ever since.