Rajya Sabha member Sasmit Patra held a meeting with Finance Minister Nirmala Sitharaman on Wednesday, submitting a formal request to bring petrol and diesel under the GST umbrella. The BJD lawmaker argued that the current economic climate requires a fresh look at fuel taxation to ease the burden on various sectors. He pointed out that Article 279A(5) of the Constitution already allows for the inclusion of petroleum products based on the GST Council's recommendations.
The representation highlighted how fluctuating fuel prices act as a primary driver for inflation and rising logistics costs. Patra noted that the MSME sector and the farming community are particularly vulnerable to high energy expenses. By moving toward a unified tax structure, the BJD leader believes the country can achieve better market integration and eliminate the disparities caused by varying state VAT rates.
- Phased integration proposed — a gradual transition to protect state revenues from sudden shocks
- Technical working group — the formation of a fiscal body to study implementation models
- Stabilization framework — a formula-based mechanism to ensure financial security for states
During the discussion, Sasmit Patra acknowledged that states have valid concerns regarding revenue stability. To address this, he suggested a "calibrated GST slab structure" and a temporary revenue-protection cess. This approach would allow for a smoother shift without immediately disrupting the fiscal balance of state governments, especially for industrial hubs like Odisha.
The BJD leader further requested that the Finance Ministry facilitate a broad consensus among all states. He emphasized that lowering freight and supply-chain costs would significantly boost India's industrial competitiveness. "A consultative reconsideration of the issue is now warranted by prevailing economic conditions," the MP stated in his representation to Nirmala Sitharaman.
