MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)
(a) to (c ) : The issue of tax burden due to Statesâsales taxes on
petrol and diesel has been raised by various stakeholders on several
occasions.As per Entry 54 of Seventh Schedule of the Constitution,taxes
on sale or purchase of goods is a State subject and an Empowered Committee
of State Finance Ministers has been constituted to take decision on all
matters relating to State level VAT and sales tax related issues.In this
regard on 9.6.2008,the then Union Finance Minister had also written to the
Chairman,Empowered Committee of State Finance Ministers requesting the States
to reduce the sales tax rates on petrol and diesel to a uniform level
throughout the country.