MUMBAI: The transporter associations in Maharashtra and across the nation have suggested that diesel should be brought under the purview of Goods and Services Tax ( GST ) in the Union budget . This is among their numerous demands and suggestions submitted to the Finance Ministry in relation to the budget, which is set to be presented on Tuesday. Presently, petroleum products are subject to cess, central excise, and state Value Added Tax, which have been providing substantial benefits and high revenues to the central and state governments.
"We are currently facing disparate taxes at both the state and district levels. Therefore, we have proposed uniform diesel prices throughout the country under GST to mitigate logistics costs , which will also bolster the manufacturing sector ," stated Bal Malkit Singh from the All India Motor Transport Congress. A petition outlining their demands has already been submitted to the Finance Ministry in the past, which also includes a reduction in GST on essential and non-luxury items.
" Transporters have requested a decrease in GST on non-luxury items pertaining to the transport sector, such as trucks, tyres, spares, third-party premiums, etc., to alleviate the financial burden on small operators and make truck costs more affordable," he added. In their petition, they also called for the removal of restrictions on tyre imports.
Currently, the persistent upward trend in tyre prices, triggered by import restrictions, is adversely affecting the economic viability of the truck operating business. "Some of the domestic tyre manufacturers are capitalising on this situation by pricing products at a premium," a transporter alleged, adding that the "inflated cost of tyres" is placing an additional financial strain on the transportation business..
