Centre, states must work together to lower fuel prices, says FM

Finance Minister Nirmala Sitaraman has said that the Union Budget goes beyond a five trillion dollar economy. Speaking at a function in Chennai, the Minister said that OPEC has to decide on the prices of petrol and diesel around the world. And the price of fuel is a global issue. She also said Central and the States need to discuss on uniform rationalisation of GST.Stating that the states levy ad valorem rates of sales tax or VAT which help them get more revenue whenever prices go up, she said it won't serve any purpose if the Centre were to take the moral high ground and bring down excise duty to zero. The taxes by centre and states equal, she said.

The finance minister said if the GST Council agrees on one rate then all over the country there can be one fuel price rather than Chennai being more expensive than New Delhi or New Delhi more expensive than Mumbai."That anomaly can be addressed if it is under GST. And that can be just one tax which can be shared by both Centre and State," she said.Retail pump prices differ from state-to-state depending on the local taxes (VAT) and freight. Describing India as a welfare state, she said Government takes care of health and education and supports legitimate wealth creation.Ms Sitharaman said, if avenues of tax are not widened development or improvement cannot take place adding that  Government needs to be a facilitator with minimal regulation.