Sooner petrol and diesel are brought under the GST, better it would be for the Indian economy because changes in the Goods and Services Tax are brought only after wider deliberations by the GST Council, said ASSOCHAM Secretary General Mr Deepak Sood.
Governments, both at the Centre and States have been over-dependent on petrol and diesel for revenue. While this over-dependence needs to be brought down, there is a strong case for a national parity for prices of the automobile fuel. “Otherwise, the broader objective of a single market under the GST remains unfulfilled,” Mr Sood said.
He said the industry has been seeking a bold stimulus package for providing immediate relief as it is reeling under the 42-day lockdown, due to Covid-19 crisis. One of the main reasons for the stimulus is to revive the demand by way of tax reductions. “But, on the contrary, if taxes are raised , demand would be further depressed, giving a jolt to the economy”.
In any case, the crude oil prices have crashed to unprecedented lows , without the pump prices being reduced, against the spirit of the market-driven pricing policy, the ASSOCHAM said.