The government says there is no proposal to reduce taxes on gasoline and diesel
NEW DELHI: The government said Monday that there is no proposal to reduce taxes on gasoline and diesel.
Finance Minister Nirmala Sitharaman told Lok Sabha that nowhere in the world do gasoline and diesel prices remain stable for a particular period of time.
To a question about whether gasoline and diesel would be subject to the goods and services tax (GST) regime, he said that, somehow, they are already under the GST zero rate category. Rates must be decided by the GST Council, he said.
The council, chaired by the minister of finance of the Union, has ministers in charge of finance or taxes of all states as members.
At present, there is no proposal to reduce taxes on gasoline and diesel, Sitharaman said in response to a question about whether the government proposes to reduce taxes to lower gasoline and diesel prices.
In another consultation, the minister said that no new gasoline and diesel taxes are currently being considered.
The central government imposes several central special taxes and customs duties on gasoline and diesel. In addition, state governments impose taxes on them.
When asked if small farmers would receive subsidies for diesel, Sitharaman said the Center and state governments tax at different levels.