Indore: The Madhya Pradesh government, on Saturday, made it that petroleum products would not be brought below the ambit of goods and Providers Tax (GST). “The overall industrial income that we get from petroleum products is about 35 per cent of the entire tax (business) that government collects. Therefore, it’s tough for us to carry it underneath the GST as we need funds for running the federal government, development and to fulfill our social obligations,” state finance minister, Jayant Malaiya told reporters.
Nevertheless, the minister, who admitted that the rate of tax (VAT and entry tax) on petroleum products within the state is on the upper facet also gave a justification for it.

“States like Gujarat and Maharashtra get enough income from industrial production, but it surely was not the case with Madhya Pradesh as industrial activities are less here. Therefore, for incomes sufficient funds (income) we need to levy tax on petroleum products,” Malaiya stated.

The minister mentioned in 2016-17, a total of Rs 29,500 crore business tax was collected in the state which suggests an increase of 14.5 per cent per yr.

Malaiya said that he was satisfied with the implementation of GST within the state and the GST Council on the idea of state’s feedback is constantly reforming it.

“Madhya Pradesh will get lot of profit with this new tax regime as a result of it is positioned centrally. It may even result in enhancement of enterprise activities particularly stocking and transportation of goods,” he said.