With the fuel prices now a major concern in the government corridors, the Niti Aayog vice chairperson Rajiv Kumar opined that cut in taxes on fuel, both at central and state level could be the answer.
He also batted for the fuel to be brought under the Goods and Services Tax or GST.
This amid the Bihar Deputy CM Sushil Modi opining that fuel prices won’t be impacted too much even if its brought under the GST ambit.
Rajiv Kumar was also dismissive of the speculation that crude oil would reach $100 per barrel by the end of the year.
He said that a price rise in oil does work like a tax on the economy, because it cuts into disposable incomes.
The Niti Aayog chief emphasized that as each rupee’s cut in excise duty could lead to a revenue loss of Rs. 13,000 crore.
He expressed confidence that improving tax buoyancy and registrations under the GST net could provide that leeway.>