With the common man reeling under the impact of rising fuel prices, the central government can ease the burden by slashing excise duty but the onus is also on state governments to chip in with similar cuts, according to policy researcher Karan Bhasin.
Speaking to Money9, Bhasin said if petrol and diesel prices under the ambit of GST, the burden on consumers will ease a bit. However, for that to happen, the states will have to make some sacrifices on the taxes levied.
On why the central government has not slashed excise duty, he said a probable reason could be the central government looking at a faster adoption of electric vehicles.
“It may be a painful way to nudge people towards electric vehicles. But if it is a policy decision, then not much can be done. We need taxation reforms. The way things are right now, it is a reality that we overtax a very small proportion of people who end up paying for the various subsidy programmes of the government,” he said.
Watch the full interview here:
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