If Centre Can Balance Its Fiscal Prudence With Excise Duty Cut, Then So Can States: Dharmendra Pradhan
Speaking on the sidelines of World Economic Forum, the minister said that the consumer interest ought to be the top priority of both the centre and state government.
After cutting excise duty by Rs 2 per litre, Union Petroleum Minister Dharmendra Pradhan has asked the states to slash the Value-Added Tax (VAT) on fuel by 5 per cent yesterday, while maintaining its fiscal prudence.
“I am hopeful that all the states will restructure their tax structure as the consumer interest is a top priority. The government has revised its excise duty keeping in mind the consumer’s interests and I am hopeful the states will apply the same”, said Pradhan.
Talking about the consent and willingness of the states to take up the tax cut, the minister says that it is the responsibility of the states to formulate tax schemes.
“Till now, the tax on fuel was from both centre and state governments and the proceeding of the centre tax revenue used to go to states as well via centre sponsored schemes, additionally. If the central government has done the same keeping in mind its fiscal prudence, then states can also do the same smoothly”, added the minister, on the sidelines of World Economic Forum.
He added that Centre has sacrificed Rs 26,000 crore in revenue while cutting excise duty.
Talking about the GST on petroleum products, the minister added on to say that as a petroleum minister he has always pushed for the same with the final decision in the hands of GST council.
“It is not an administrative decision and posts independence it is for the first time that such mechanism has been structured where the centre and states both will decide on the issue together,” the minister said.
