Jaipal Reddy bats for VAT cut in petro prices

Hyderabad: Former Union Minister for Petroleum and Natural Gas S Jaipal Reddy suggested the Centre to include petrol and diesel under the ambit of Goods and Services Tax (GST) as the move will ensure better predictability of prices, while insisting on state government to slash value-added tax (VAT) on fossil fuel.

Reddy supported views expressed by Dharmendra Pradhan, had earlier indicated that he was requesting GST Council to bring petrol and diesel under the GST purview. “I support the demand that the states should also lower their VAT. Otherwise, the Centre, increasing its own tax rate and increasing the prices, is trying to pass on the burden or blame it on the states,” Reddy told the media here on Tuesday.

Pradhan had also recently urged all states to reduce VAT on the fuel so that prices could come down. “I am for bringing the petroleum products under GST so that there is predictability for the consumer and for the economy,” Reddy said.

He also opined that considering the current international crude oil prices the petrol prices should be around Rs40. He said when the UPA was in power in 2008, the international crude prices were at $140 and after he became the Minister it was $110.

Now it is hovering around $50 or $54 for so long time. Though the current pricing scenario is boon to a country like India which is net importer of oil, it has become a curse due to the actions of present NDA government, Reddy said.