1. Budget 2018: After solar industry, biodiesel firms demand levy cut from government

Budget 2018: After solar industry, biodiesel firms demand levy cut from government

Budget 2018 is around the corner and different sectors of the economy are lining up to Finance Minister Arun Jaitley with their demands including the biodiesel industry that has demanded the Goods and Service Tax (GST) rate on it be slashed from the current 18 to 5 percent.

By: | Updated: January 20, 2018 12:18 AM
Budget 2018 is around the corner and biodiesel industry demands reduction in the levy Budget 2018 is around the corner and biodiesel industry demands reduction in the levy

Budget 2018 is around the corner and different sectors of the economy are lining up to Finance Minister Arun Jaitley with their demands. Just days after solar industry asked the government to reconsider the levy imposed on the solar panels in Budget 2018, the biodiesel industry has also demanded the Goods and Service Tax (GST) rate on it be slashed from the current 18 to 5 percent, IANS reported. On Tuesday, the Biodiesel Association of India (BDAI) wrote to Finance Minister Arun Jaitley and Finance Ministers of West Bengal and Rajasthan seeking a reduction of high GST rate, IANS report said. The industry has high expectations from Budget 2018. The apex industry body pointed out that while there is a huge potential of producing more cleaner fuel in India, the extraordinary levy has bought the industry at the “brink of extinction”.

Also read: Budget 2018: Income tax slabs for FY2018-19 may be changed by FM Arun Jaitley to give relief to common man

With the implementation of GST from July 1, 2017, levy on Biodiesel has gone from 6 percent in excise duty to 18 percent in GST. The association expects Budget 2018 to take care of their expectations. “This has made Biodiesel costlier than High-Speed Diesel (HSD) and biodiesel users will not get any Input Credit for use of it. Both these put together, the effective cost of Biodiesel has become unviable to the end users. Eventually, the entire Biodiesel industry will come to a halt, despite this Green Fuel having such environment and social benefits,” BDAI said in the letters. Made directly from edible oil in equal quantity, of which India is a second highest consumer, the biodiesel helps in reducing the emissions by 30 to 100 percent, depending upon its blend in the normal diesel.

Watch video: Budget 2018: 5 Blockbuster Income Tax Moves Common Man Can Expect

Finance Minister Arun Jaitley will present the Budget 2018 in Parliament on February 1. The Budget 2018 is crucial as this would be the Narendra Modi government’s last full-fledged budget before the big 2019 Lok Sabha Polls. The Budget 2018 will also be the first one after the implementation of Goods and Services Tax (GST). Politically too, Budget 2018 will be crucial as assembly elections will be held in big states like Karnataka, Rajasthan Madhya Pradesh. Many are curious to know when and what will come out of Finance Minister Arun Jaitley’s briefcase during the Budget 2018.

Also read: Budget 2018 date: Day, time of FM Arun Jaitley’s budget speech, economic survey and Budget session

When will Budget 2018 be presented?

The date for the Budget 2018 has been announced by the Modi government. The Union Budget 2018 will be presented by FM Arun Jaitley. Notably, the budget 2017 was presented on February 1. This year too, the Modi government has chosen the same date for presentation of Budget 2018. t is likely that FM Jaitley will ‘rise to present’ budget 2018 at noon.

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