Petrol Thread .... Center already asked States to put Petrol under GST ani

[Kool_SRG]

1 minute ago, uttermost said:

how? What's the rate of tax on petrol now? more than 50%, right?

and the highest bracket in GST is 28%. It should reduce the price of petrol.

Petrol Local Tax by State is highest by Maharastra around 39% & Diesel Telangana lo highest anukunta 27-28%..

[uttermost]

Just now, Spartan said:

simplified tax strategy unnapudu..it will be easy to bring it down or up and control according to international market kada..unlike now..which has to go through two layers and neither side is ready to give up their income.

your understanding of how taxes work, and GST does is deeply flawed.

 

[uttermost]

Just now, Kool_SRG said:

Petrol Local Tax by State is highest by Maharastra around 39% & Diesel Telangana lo highest anukunta 27-28%..

combined taxes brother. it's greater than 50% kadha..

because the 28% highest rate on GST is combined rate anukunta.. I may be wrong about the rate. but its nowhere close to 50%

[Spartan]

Just now, uttermost said:

and the center also loses money (lots of money) on including petrol in GST. all taxes like excises, and other cesses will go if GST is applied.

That's why your premise that this is some local politics, and against the center, is far from the truth.

local politics still undi kada...

GST , they can up the % for Petrol to cover up the losses which is better than 50+ which is going out of consumers pocket.

 

[uttermost]

4 minutes ago, Spartan said:

they will for sure pay lower price than what they are paying ani anukuntunna..irrespective of the place.

For that, they can simply reduce the excise taxes, and remove cess. Simple.

[Spartan]

1 minute ago, uttermost said:

your understanding of how taxes work, and GST does is deeply flawed.

 

+1 thats what i am trying to understand..and know from this thread.

[Spartan]

Just now, uttermost said:

For that, they can simply reduce the excise taxes, and remove cess. Simple.

Can States do the same from their side too.. they wont..thats where the whole problem is..

[uttermost]

1 minute ago, Spartan said:

local politics still undi kada...

GST , they can up the % for Petrol to cover up the losses which is better than 50+ which is going out of consumers pocket.

center politics kooda undhi kadha.. GST on petrol will affect Center's bottomline too. in a huge way.

[uttermost]

Just now, Spartan said:

Can States do the same from their side too.. they wont..thats where the whole problem is..

Petrol taxes form a huuuuugee percentage of their revenue. Obviously, its easier for the center to do it.

[Kool_SRG]

1 minute ago, Spartan said:

simplified tax strategy unnapudu..it will be easy to bring it down or up and control according to international market kada..unlike now..which has to go through two layers and neither side is ready to give up their income.

Internationally Up & down vachinaa ipudu kuda Oil companies making changes accordingly but baa tagginappudu excise duty penchi paardobbaru tagginappudu tagginchaledu ga atleast as temporary measure... Ivvala ane saaru ga no role of duty ani.

Oil companies doing their job its the duty & local tax which putting more burden.. Inka patchi ga cheppalante 1 Ltr petrol actual cost kante tax le ekkuva unnayi at the end its getting more than doubled by the time it reaches the end consumer...

[Kool_SRG]

3 minutes ago, uttermost said:

combined taxes brother. it's greater than 50% kadha..

because the 28% highest rate on GST is combined rate anukunta.. I may be wrong about the rate. but its nowhere close to 50%

Yes combined is more... 

[Spartan]

1 minute ago, uttermost said:

center politics kooda undhi kadha.. GST on petrol will affect Center's bottomline too. in a huge way.

Politicians will roost....never ending story.    from my first post...

anduke its better to move to one authority...to benefit the consumer..atleast.

[uttermost]

2 minutes ago, Spartan said:

Can States do the same from their side too.. they wont..thats where the whole problem is..

see.. you are arguing atleast 3, 4 points here. and they are all contradictory.

1. adding petrol to GST will destroy state's revenue streams. States dont trust that center will make up that shortfall. center hasn't kept that promise earlier.

2. uniform rates are basically useless to everyone, except perhaps large corporates with multiple factories with a complex supply chain

3. GST in petrol will also make a dent in center's revenue. because under GST, taxes paid on petrol can be deducted for tax in the next stage. The effective tax on petrol will rduce to around 10% (compared to the current 50%). That's how GST works. Central govt will run out of money very soon, and will increase income tax drastically to cover the short fall.

I don't know, if anyone has talked about this obvious thing in Indian op-eds, but this is the obvious result of adding petrol to GST.

[uttermost]

5 minutes ago, Spartan said:

 Politicians will roost....never ending story.    from my first post...

anduke its better to move to one authority...to benefit the consumer..atleast.

s0rry, your argument is logically unsound. 

[uttermost]

9 minutes ago, Kool_SRG said:

Internationally Up & down vachinaa ipudu kuda Oil companies making changes accordingly but baa tagginappudu excise duty penchi paardobbaru tagginappudu tagginchaledu ga atleast as temporary measure... Ivvala ane saaru ga no role of duty ani.

 Oil companies doing their job its the duty & local tax which putting more burden.. Inka patchi ga cheppalante 1 Ltr petrol actual cost kante tax le ekkuva unnayi at the end its getting more than doubled by the time it reaches the end consumer...

states survive on petrol tax. because they are not allowed to tax income.

The question to ask is, why is the center taxing petrol.