Won't oppose petroleum under GST if there's consensus: MP

Changing its stand over inclusion of petroleum products under the Goods and Services Tax, the Madhya Pradesh government today said it would not object to it if there is a consensus on the issue.
After meeting tax consultants here, state finance minister Jayant Malaiya told reporters, "Earlier the state government was opposed to bringing petroleum products under the GST. But now we feel the state will have no problem if a general consensus on bringing petroleum products under the GST emerges."
The state government recently reduced the value added tax (VAT) on petrol and diesel by three and five per cent, respectively, the minister noted, adding that additional cess of Rs 1.5 on diesel was also withdrawn.

"Now diesel has become cheaper in MP compared to Rajasthan, Gujarat and Chhattisgarh," he said.
Malaiya also underlined the fact that about 34 per rent of the commercial tax revenue of the state comes from VAT and other taxes on petroleum products. Hence these taxes are important for the financial health of the state, he said.