Nitin Gadkari​ advocates bringing fuel under GST

He said, however, the states were wary of losing revenue on account of taxes they collect from fuel prices and liquor.

Published: 25th May 2018 01:43 PM  |   Last Updated: 25th May 2018 01:43 PM   |  A+A-

Union Minister Nitin Gadkari (File Photo)


NEW DELHI: With petrol and diesel rates skyrocketing on a daily basis, Road Transport and Highways Minister Nitin Gadkari on Friday advocated bringing fuel under the GST to curb the price hike.

"Petrol and diesel should have been brought under the Goods and Services Tax. I asked officials during a presentation if we bring fuel prices under GST will it benefit the states or not.

"They said 'yes', they will benefit," Gadkari said at a news conclave here on the four years of Prime Minister Narendra Modi's government.

He said, however, the states were wary of losing revenue on account of taxes they collect from fuel prices and liquor.

"It will be good if fuel prices are brought under GST. This will not only reduce the fuel prices but will also increase the government's revenue."

He, however, said it was his personal opinion, and the ultimate decision regarding this remained with the Petroleum Ministry.

The Minister said fuel prices were surging because of international crude oil rate.

"Earlier, we were giving subsidy on the import (of fuels). When the rates came down, the subsidy was removed. We are part of a global economy...The price of petrol and diesel are increasing due to rise of their price in international rates."

He said the money that was saved from removing subsidy on fuel allowed the government to give free Liquid Petroleum Gas (LPG) connections to eight crore families across India.


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