New Delhi: The move by the central and state government to cut taxes on petrol and diesel is timely and will help revive the economy, enabling businesses to pass on their savings on energy costs to consumers, says Confederation of Indian Industry (CII) told Mint. Monday.
“The reduction in levies at the level of the Center and the states is a timely intervention that will go a long way towards reviving the economy. Industries will be able to reduce logistics and energy costs and the benefits can be passed on directly to the consumers. ,” What was said. Shashi Mukundan, chairman of CII’s hydrocarbon committee. Mukundan is also the Chairman of BP India and Senior Vice President of BP Group.
After the announcement of the Center to reduce the excise duty on petrol ₹5 and on diesel ₹10, 22 states and union territories have cut value-added tax on auto fuels, the petroleum ministry said last Friday. Experts believe that the move will bring down inflation and help boost consumption.
Inclusion of major petroleum products in the Goods and Services Tax (GST) is high on the wish list of the industry as it will help in reducing the enormity of taxes.
“Rationalizing the tax structure on petroleum products by bringing petroleum products like natural gas and aviation turbine fuel (ATF) under the purview of GST in a phased manner will enable, among other efficiencies, a unified tax structure for both the Center and the states. Mukundan said the current shortage has come at an opportune time as consumer spending is rising and demand is picking up.
“The hydrocarbon sector is a significant contributor to the country’s economy and I am confident that the government will continue with its supportive reforms to develop the sector,” he said in the statement.
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