Though under pressure to reduce the prices of petrol and diesel, the state government has refused to bring them under Goods and Services Tax (GST) or reduce the taxes and surcharge levied on them, which is highest in the country. Taxes and surcharge on petroleum products in the state account for about one tenth of its total revenue. With a maximum slab of 28% GST, the prices of the petrol and diesel may range between Rs45 and Rs40 a litre if brought under the new tax. “It is not possible to bring petrol and diesel under GST immediately as it will paralyse state finances. Since it could not increase the surcharge on diesel owing to possibility of losing business to the neighbouring states, it hiked the surcharge on petrol.

Source: Hindustan Times September 21, 2017 05:48 UTC