Maharashtra government wants the central government to put petrol and diesel under Goods and Services Tax. As in the country we have seen there are various protests about the rising prices of petrol. People are not happy about this rise in petrol prices. This time Maharashtra government have pushed its proposal. The government believes that this will be a step towards bringing down the prices. However, the Maharashtra government has already given this proposal twice. Deputy Chief Minister and Finance Minister Ajit Pawar believed that this is the only and practical way to keep the price in control.
Ajit Pawar in the meeting
Pawar believed that government cannot alone make any decision regarding reduction in state taxes on fuel prices. All this is due to the impact of the COVID-19 pandemic on its economy. He further added if the central government will take some steps to include petrol and diesel then the Maharashtra government will support them in this decision. He also announced a hike in the Local Area Development fund of legislators from the existing Rs 3 crore to Rs 4 crore. As last year also hiked the legislator’s LAD fund from Rs 2 crore to Rs 3 crore. In the meeting, he also announced a fund allocation of Rs 100 crore each the state-run corporations of various communities.
Maharashtra Bhawan creation
Ajit Pawar has stated that there will be a Maharashtra Bhawan to be built in Navi Mumbai. He gave a clearance over this issue as this will not materialize at Rang Bhavan as it is a heritage building. This Marathi Bhasha Bhavan will be built on an open plot near Jawaharlal Bal Bhawan at Girgaum Chowpatty.
Difficulty in bringing Petrol and Diesel under GST
As petroleum products contribute a significant amount of revenues to the states. Being able to levy VAT on these products makes the state government control over their revenues. Bringing petroleum under GST will take away that control as the centre is the one in charge of fixing the rate of GST. Also, these resources vary from state to state. So to fix a specific GST is not possible for the government. This is the reason that the government cannot bring this resource to GST.