New Delhi: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.