To bring petro fuels under GST, Bibek Debroy’s advice is worth listening to

Chairman of the Prime Minister’s Economic Advisory Council Bibek Debroy said it would be useful to bring petro fuels under the goods and services tax

A rose by any other name would smell as sweet. Policy proposals are not in that lucky league.

Their salience varies, depending on who makes the proposal—the same measure has a different resonance, 

depending on whether it is endorsed by a WhatsApp forward, think tank, or retired civil servant brimming with bright ideas

that stayed in an extended pupal stage during his active service or head of the Prime Minister’s Economic Advisory Council.

So, when the chairman of the Prime Minister’s Economic Advisory Council, Bibek Debroy, says that it would be useful to bring petro fuels under the goods and services tax (GST),

it deserves welcome attention. It had been obvious right from 2017, when GST kicked in, that keeping petrol and diesel out of GST was inefficient.

But the states were afraid that subsuming their state-level value-added tax /sales tax on petrol and diesel into the integrated GST would result in a loss of revenue.