<p>Finance Minister Arun Jaitley on Saturday made a case for reducing taxes on petrol and diesel but only after the non-oil taxes increase to contribute enough to the country's gross domestic product (GDP).</p>.<p>“Taxes on oil must come down in India but, not at the cost of Fiscal Deficit. Non-oil tax to GDP ratio in India has to increase. Once that happens the dependence on oil taxation will come down," he said at ET Awards ceremony.</p>.<p>Consumers in India pay over 50% tax on petrol and diesel, one of the highest rates in the world.</p>.<p>Historically, the governments in India have reduced the prices of transport fuels by cutting duties on them which has a huge impact on their finances as a fiscal deficit or the differences between government's expenditure and revenue rises.</p>.<p>Jaitley said a wide array of reforms undertaken in the last four-and-a-half years of Prime Minister Narendra Modi-led government such as GST and demonetisation were the game changer and have increased the tax base like never before.</p>.<p>He, however, said that oil prices continue to pose a big challenge for the country which is a net importer. To this context, he said if other fiscal targets are kept under control, the ability to face this challenges will be higher.</p>
<p>Finance Minister Arun Jaitley on Saturday made a case for reducing taxes on petrol and diesel but only after the non-oil taxes increase to contribute enough to the country's gross domestic product (GDP).</p>.<p>“Taxes on oil must come down in India but, not at the cost of Fiscal Deficit. Non-oil tax to GDP ratio in India has to increase. Once that happens the dependence on oil taxation will come down," he said at ET Awards ceremony.</p>.<p>Consumers in India pay over 50% tax on petrol and diesel, one of the highest rates in the world.</p>.<p>Historically, the governments in India have reduced the prices of transport fuels by cutting duties on them which has a huge impact on their finances as a fiscal deficit or the differences between government's expenditure and revenue rises.</p>.<p>Jaitley said a wide array of reforms undertaken in the last four-and-a-half years of Prime Minister Narendra Modi-led government such as GST and demonetisation were the game changer and have increased the tax base like never before.</p>.<p>He, however, said that oil prices continue to pose a big challenge for the country which is a net importer. To this context, he said if other fiscal targets are kept under control, the ability to face this challenges will be higher.</p>