People should ask their government about high fuel prices, Finance Minister Namara Sisalaman said at a press conference on Monday night that the central government would cut gasoline and diesel excise taxes and then lower VAT. He said he asked the state. (VAT) Further reduce tariffs.
“Penroll and Diesel cannot be included in the Goods and Services Tax (GST) until the GST Council has determined their inclusion,” the Finance Minister added.
Mr. Sisaraman spoke with the prime ministers and finance ministers of all states to improve the country’s investment climate “in the wake of a strong recovery” and “opportunities created by changes in geopolitical reality after the pandemic.”
After widespread criticism of rising fuel prices, the center reduced gasoline and diesel excise taxes by 5 and 10 rupees per liter, respectively, on the eve of the Vigil festival. Some states are lowering VAT to lower fuel prices. However, some states require union governments to further reduce excise taxes. For example, the Minister of Finance of Kerala called the center movement “damage control.” The ruling BJP lost many seats in the recent by-elections due to factors such as rising fuel prices.
Opposition claims that the excise tax has only been reduced slightly because the Modi administration has been raised significantly in the past. They argue that there is no doubt that the VAT will be lowered because the state government has not raised it, and that if the center cancels the excise tax hike, prices will automatically fall.