Finance Minister Nirmala Sitharaman on Monday said in Lok Sabha that at present there is no proposal to reduce taxes on petrol and diesel. Sitharaman’s response came to a question on whether the government proposes to reduce taxes so that the prices of petrol and diesel would come down.
Sitharaman also said that there is nowhere in the world do the prices of petrol and diesel remain steady for a particular period of time.
There was another query in the House about bringing petrol and diesel under Goods and Services Tax (GST) on which the minister said that in a way, they are already under the zero category of the GST. She also said that the rates have to be decided by the GST Council.
It is to be noted that the GST Council is chaired by the Union Finance Minister and has minister in-charge of finance or taxation from all states as members.
Sitharaman also told in the Lok Sabha that at present, no tax on petrol and diesel is being considered.
On the question about the small farmers would be given subsidy on diesel, Sitharaman said that the centre and state governments tax are at different levels.
On petrol and diesel, taxes are imposed by both the central government as well as state government. The central government imposes various central excise and customs duties while the state governments levy taxes on them.