NEW DELHI: Industry chamber PHDCCI on Sunday urged the government to bring petroleum products in the ambit of goods and services tax (GST) soon, as high inflation in the fuel products is not only stoking overall prices but also increasing the cost of raw materials for manufactured items.
PHDCCI President Sanjay Aggarwal said the Wholesale Price Index (WPI)-based inflation has been in a double-digit growth trajectory for the past three months, stoked by high prices of fuel and power. He added that high commodity prices are posing a serious challenge to the small businesses to operate in the difficult pandemic times.
These are impacting the cost of production and reducing price-cost margin of the producers and affecting their competitiveness in the domestic and international markets, Aggarwal said. "We urge the government to bring the petroleum products in the ambit of GST, sooner than later. High inflation in the fuel products is not only stoking overall inflation but also increasing the cost of raw materials for manufactured products with its cascading impact," he said.