HYDERABAD: Calling for a ‘uniform tax mechanism’ across the country, Petroleum Minister Dharmendra Pradhan has said petroleum products will need to be brought under the ambit of the goods and services tax (GST).
"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,” he said.
Currently, there are two kinds of taxes on petroleum products – central excise and state value-added tax.
On the contentious issue of daily fuel price revision, Pradhan said domestic rates are determined by international prices. "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," he said, adding that States are getting 42 per cent share in whatever levy is being collected by the Centre.
Justifying the higher tax collections on petrol, he said: “Don't you think we should build good roads? Don't you think we should give clean drinking water to citizens? See the spending of the Government of India. Previously, for the housing scheme (for the poor), the government was spending Rs 70,000 per unit. Now we are spending Rs 1.5 lakh."
According to the minister, the second round of auction of oil and natural gas blocks received good response from both international and domestic players.