Oil Minister Dharmendra Pradhan has once again reiterated that states should reduce retail VAT on petrol and diesel by 5%.
Oil Minister Dharmendra Pradhan has once again reiterated that states should reduce retail VAT on petrol and diesel by 5%, however, adding that the central government can only “request” the states as in the federal structure, it is states’ prerogative to tax their citizens. “How states will manage their fiscal model and how they will tax their citizen it is upto state. In the federal structure, we can only request. According to our assessment, we have suggested the states to reduce by 5%,” Dharmendra Pradhan said in an interview with ET Now.
Since central government’s call to reduce retail VAT on petrol and diesel earlier this month, four states — three NDA ruled and one poll-bound — have cut the retail VAT so far. Gujarat, Maharashtra, Himachal Pradesh and Madhya Pradesh have so far announced a cut in taxes resulting in prices going down by nearly Rs 2.5 per litre. The UT Administration has also cut down retail VAT on fuel by 5%.
The Oil Minister expressed hope that other states will cut the taxes as well and that he was in conversation with them. Speaking on bringing petrol and diesel under the purview of GST, Dharmendra Pradhan, once again, said he is in its favour and has requested the GST council to bring it under the purview of the GST.
The Oil Minister recently announced that an investment worth $ 40 billion is expected in Indian exploration and production in next 4-5 years. “A cumulative investment of $40 billion is expected in Indian E and P sector in near term (4-5 years),” he told reporters at an event. He had earlier pressed oil cartel OPEC to adopt “responsible pricing” for oil and consider the world’s third-biggest oil consumer as its preferred sales destination.