India Tax Payer - Forum

Posted: 17-03-2011

The oil and the fuel prices have gone up in such a way that people find it extremely hard to move on with their daily schedules. Every human being is someway related to this hot rise as they may compulsorily depend upon any variety of transport. India has to take pride in announcing that it is the topper in pricing oil and fuel. The prices are accounted to the price of oil that went high all round the world and lessened supply of petrol to selective countries. The Government has to go for a price that holds good for all the citizens in the country and restructuring of the price tag for diesel is a very important thing to be done.

 The tax design has to be modified to Goods and Service Tax, the GST. Treating crude oil and fuel as luxury goods is quite unapt for how its usage is over the world. India has to set up a different functionality to overcome the issue of increasing fuel rates. Bringing down the rates of fuel is the only right way to make sure that there is enough supply, yet moderate usage of fuel. Letting down the prices eventually administers economic safety and strength.

 In the near past, the oil companies tried reducing the prices, a way that was chosen for half reduction where this proved dissatisfactory and useless. The economic status in the mid eastern countries better called the “Oil Wells” went up the price ladder to $100 and above for a single barrel. This comes pretty near to what it was in the past with a lot more than a simple $100.

 The redesign of the tax policy must be in such a way that it synchronizes with the World crude oil and fuel prices.  The GST or the Goods and Service Tax concentrates on bringing uniform tax rates all over the country. Another important point to be stressed is that the VAT or the Value Added Tax must drop down unless and until the overall tax paid or the average tax rate wouldn’t come down to a decent rate.

 The crude oil rates are up the graph as the Basic Customs Duty or the BCD is primarily high. To decrease the prices of oil and fuel is to make the Customs duty a finer strategy that introduces a measure setting up a regulation in the tax prices so that the levying doesn’t go irregular. The best way to send increasing taxation out of the house is to set up a criterion that provides money to states that demand Value Added Tax (VAT).

 Economists and tax professionals expected the change of Oil and fuel to Goods and Service Taxation norms (GST) but it turned out to be a big mishap as the Government has decided to have a more detailed talk later in the mid quarters. People still conventionally believe that the Oil and Fuel are subject to the Luxury Goods category. Well, where this is untrue and it is the duty of every individual to understand how it affects the prices of oil and fuel. Its time to raise voices else it is going to be “Adding Price Hike to the Fuel”

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