The Modi government has denied the excise duty on petrol, diesel Price. A senior officer said this on Monday. He says that the Central and some State Governments are not in a position to take such a step and raise the potential revenue deficit from them. At the same time, the next meeting of the GST Council is scheduled on 28th September but the agenda of the meeting is not the price of petrol and diesel. That is, the government is not worried about the price protests. However, sources of the Finance Ministry have made it clear that there is no intention of reducing excise duty from petrol and diesel right now. In fact, the government believes that the impact of the reduction in excise duty can be on the work of development.
Petrol Diesel Price Issue
Not only that, the demand for the petrol and diesel to be included in the GST but the ministry’s attitude is not positive. According to sources, No state government in favor of bringing petrol and diesel to the realm of GST. States feel that bringing under GST will have an adverse effect on their earnings, while their gardener’s condition is not well enough. It does not seem that people will get relief at the moment.
The senior official said on condition of anonymity that the excise duty reduction would affect the fiscal deficit of the center whereas there are some states like Bihar, Kerala, and Punjab that are not in a position to reduce sales tax or VAT on these fuels. The government believes that the price of crude oil in the international market will be lower in the coming days. Due to rising prices of crude oil and decreasing the exchange rate of rupees against the dollar, prices of petrol and diesel are touching new heights these days.
The official said that the consumers who consume petrol, diesel, should pay the price. Although, on Sunday, Rajasthan has announced a four percent reduction in VAT rate on petrol and diesel, while Andhra Pradesh has cut the sale tax on Monday and cut it by two rupees each. The official said, “Tax cuts on petrol, diesel will increase fiscal deficit. At the central level, the situation of fiscal deficit determines the yield in the bond market. The rupee will also be weak due to the increase in the fiscal deficit. “He said,” With the reduction in taxes, you will have to cut the expenditure on development activities. This will be the biggest blow to the tax deduction.
Petrol and Diesel Price in Delhi
Petrol price in Delhi has reached the highest level of Rs 80.73 per liter so far, while the price of diesel has reached a new height of Rs 72.83 per liter. It is noteworthy that petrol and diesel prices in Delhi are the lowest in comparison to the other metros of the country because VAT is the lowest in Delhi.