What can be the solutions for the rising prices of petrol and diesel.
Answers
Answer:
The present state taxes including VAT and central taxes together attract around 114% of tax on fuel. Final price = basic price of fuel + processing charge + transportation charge+ dealer commision + 114% tax. If they are brought under GST then it it can be placed in highest slab of 28% + some cess which will not be above 60% . So, you can bring down the tax ratio on fuel by half. But, State Govts especially from south are not willing to bring it into GST. These states get their major revenue from taxes on liquor and fuel. If fuel is brought into GST , these states will loose their major revenue source which they used to spend on distributing FREE items like laptops , TV, grinder, sponsor 1 lakh for wedding of a girl..what not ..anything for votes. SO, convince CBN and KCR to bring it into GST
The rising prices are because of shortage of supply.
One can use substitute fuels, and reduce consumption, or one can develop other sources like wind or hydro energy, along with coal.
Less demand for fuel means existing suppliers need to lower price to keep competitive.
Do you have choice in your fuel? then choose something other than petr-dollar fueled work.
To answer this we need to take a little tour of indian economy. Petroleum products viz., Petrol, diesel, ATF, LPG, MTO, Bitumen etc are one of the main sources of income for State govts across country. Also a major source of income to centre too, but a little less compared to States. Hence if taxes to be reduced alternate sources of income need for States to be found. With higher petroleum products prices CPI goes up hurting more common man than the rich. Because common man loses much by way of travel in 2W & consumables such as vegetables, milk, grains, fruits, non veg items etc, as the cost
Explanation:
The present state taxes including VAT and central taxes together attract around 114% of tax on fuel. Final price = basic price of fuel + processing charge + transportation charge+ dealer commision + 114% tax. If they are brought under GST then it it can be placed in highest slab of 28% + some cess which will not be above 60% . So, you can bring down the tax ratio on fuel by half. But, State Govts especially from south are not willing to bring it into GST. These states get their major revenue from taxes on liquor and fuel. If fuel is brought into GST