An Indian ministerial panel on the country’s goods and services tax will consider taxing petroleum products under one national rate, consistent with people conversant in the matter, opening the door for a possible major change in consumer prices and government income.
The panel, headed by the minister of finance Nirmala Sitharaman, will examine the proposal at its meeting Friday after an Indian court asked for the interest to be haunted, the people said, requesting to not be identified because the agenda of the meeting isn’t public.
A spokesperson for the finance ministry didn’t immediately answer involves comment.
Any change to the GST system would require approval by three-fourths of the panel, which incorporates representatives from all states and territories — a number of which have resisted incorporating fuels into the system as they might be delivering a key revenue-raising tool to the central government.
The move to a consistent levy for fuel, discussions of which were reported earlier by CNBC-TV18, would help soften gasoline and diesel prices, which are testing records in recent months mainly thanks to taxes imposed by the federal and state governments.
Levies structure quite half fuel costs within the country, a sore point for the inflation-targeting Federal Reserve Bank of India because it seeks to stay borrowing costs low to support economic recovery from the pandemic. Diesel and gasoline structure quite half the country’s fuel consumption.
At its meeting Friday, the GST panel also plans to think about extending concessions on some drugs utilized in Covid-19 treatment for an additional three months until Dec. 31, the people said. the govt also will likely present options on compensating states for his or her GST losses beyond next year, they added.
The panel would also probably check out increasing GST to 12% on some renewable equipment and to 18% on iron, copper, and other metal ores and concentrates, CNBC-TV18 reported.