Petroleum products should have uniform tax, says Minister

Justifying the move, he said there has to be a “uniform tax mechanism” all over the country. “This is the proposal of the Ministry of Petroleum. We have appealed to all the states and finance ministry (to bring petroleum items under GST). 

Looking into the consumer interest, there must be tax rationalisation. GST is a well thought mechanism by the Government of India and the states, they developed the GST Council... “There are two kinds of taxes (on petroleum products). One is the central excise and the other one is state VAT. That is the reason we are expecting uniform tax mechanism from the industry point of view,” Pradhan said. 

Justifying the daily price mechanism which is in place for petrol and diesel, Pradhan said states are getting 42 per cent share in whatever levy is being collected by the Centre and clarified domestic rates are determined by international prices. 

“There is no communication gap or mismatch (between domestic and global prices). Whatever is the international price we are passing exactly that to the Indian consumer. When it is increasing, we have to increase, when it is declining we have to decrease it. That is the practice in the country.”