Mumbai: Deputy Chief Minister and Finance Minister Ajit Pawar on Thursday said that Maharashtra’s opposition to bringing petrol and diesel under the Goods and Services Tax (GST) should not come under attack.
Discussions began at the Goods and Services Tax Council meeting on the inclusion of petrol and diesel in the scope of goods and services tax. The state will strongly oppose the inclusion of petrol and diesel in the goods and services tax, said Ajit Pawar. The state’s right to levy taxes should not be attacked. If such a proposal is made, the state will oppose it, he said.
Loss of Rs 40,000 crore
The inclusion of petrol and diesel in the goods and services tax could cause huge financial losses to the state. The state earns about Rs 35,000 to Rs 40,000 crore annually from the sale of petrol and diesel. If fuel is included in the goods and services tax, the state will have to release water on that amount. In the current economic scenario, the state cannot afford it. Since the income does not increase while the expenditure increases, a deficit budget has to be presented already. The state earns about Rs one lakh crore through state goods and services tax. The share of fuel is 40%. This is why the state opposes the inclusion of fuel in the scope of goods and services tax.
Get the state share money
Pawar also said that while implementing the Goods and Services Tax, the states should be paid on time as per the assurance given in Parliament. The state is yet to receive Rs 30,000 to 32,000 crore from the Center. The demand for early release was made on behalf of the state at a meeting with senior officials of the policy commission just two days ago. The state gets most of its taxes from goods and services tax. This should not change the prevailing tax structure, said Pawar.
… Only then petrol-diesel cheaper: Sudhir Mungantiwar
If petrol-diesel is included in the Goods and Services Tax (GST), petrol in the state will be cheaper by Rs 25 per liter and diesel by Rs 20-22. Former Finance Minister and senior BJP leader Sudhir Mungantiwar on Thursday demanded that the Center and the GST Council should take this decision to give relief to the people and that the state government should also give relief to the people without protesting. The state should levy as much tax as the people can afford. Don’t cheat. He also said that if petrol-diesel was brought under GST, even if the maximum tax rate of 28 per cent was kept, it would be cheaper.