Assam is set to lose a huge amount of Rs 1000 crore as revenue if chief minister Tarun Gogoi is to be believed.
Addressing a press conference in Dispur on Saturday, Gogoi said that the Centre is contemplating to bring petroleum products under GST and that if the process is not stopped the state would be a big loser. According to Gogoi, the loss amount won’t be less than Rs 1,000 crore.
Notably, under the proposed system in the new bill, the Union and state would be free to levy general sales tax on petroleum products at a low rate. This will adversely effect the revenue of the state. If such goods are brought under GST, the states will have to levy additional tax over and above GST.
Petroleum products are considerable revenue earners for Assam, the sales tax on diesel is 17% while that on motor spirit (petrol) is 25%.