States against inclusion of petroleum, liquor in GST. Here’s why

aLcohol.jpg

Several states today opposed inclusion of petroleum products and liquor in the proposed Goods and Services Tax (GST) regime as the move would severely affect their revenues.

This came out at the meeting of the Empowered Committee of State Finance Finance Ministers that deliberated the revised draft of the Constitutional Amendment Bill for introduction of new indirect tax regime, among other things.

Some states also expressed their reservation to inclusion of ‘entry tax’ in the GST fold.

While the centre wants liquor and petroleum products should come under the GST, states are keen to retain their power to tax these items as they are major sources of revenue.

“Most of the states…majority of the states have opposedbringing petroleum products and liquor in GST framework. Theywant to keep (the two items) out of GST,” Empowered CommitteeChairman and Jammu & Kashmir Finance Minister A R Rather toldreporters after the meeting.

He did not provide names of states opposing the move.

Several states today opposed inclusion of petroleum products and liquor in the proposed Goods and Services Tax (GST) regime as the move would severely affect their revenues.

This came out at the meeting of the Empowered Committee of State Finance Finance Ministers that deliberated the revised draft of the Constitutional Amendment Bill for introduction of new indirect tax regime, among other things.

Some states also expressed their reservation to inclusion of ‘entry tax’ in the GST fold.

While the centre wants liquor and petroleum products should come under the GST, states are keen to retain their power to tax these items as they are major sources of revenue.

PTI

Source: http://www.firstpost.com/business/economy/states-against-inclusion-of-petroleum-liquor-in-gst-heres-why-1184717.html

Leave a Reply

Your email address will not be published.

Solve this and then Post Comment *

scroll to top