Sitharaman clarified that currently no new tax on petrol and diesel is being considered.


Finance Minister Nirmala Sitharaman told the Lok Sabha that no where in the world do the prices of petrol and diesel remain steady for a particular period of time. To a query on whether petrol and diesel would be brought under the Goods and Services Tax (GST) regime, she said that in a way, they are already under the zero rate category of the GST. The rates have to be decided by the GST Council, she noted.

“At present, there is no proposal to reduce taxes on petrol and diesel,” Sitharaman said in response to a question on whether the government proposes to reduce taxes so that prices of petrol and diesel would come down. The Central Government imposes various central excise and custom duties on petrol and diesel. Besides these, the State governments levy taxes on them.

ALSO READ: European Space Agency raises record £12.3 billion

When asked whether small farmers would be given subsidy on diesel, Sitharaman said the Centre and the state governments tax at different levels.