by R Jagannathan
Faced with media and opposition pressure to bring down fuel prices by cutting petroleum taxes, Union Petroleum Minister Dharmendra Pradhan has been touting the need to bring petro-products under the goods and services tax (GST). It ain’t happening. While throwing in the red herring of GST may be a good diversionary tactic, it won’t work. Both Centre and states have too much revenue at stake to allow this to happen; and if petro-goods revenues must be protected even under GST, we will have an even more complicated GST structure than we now have. So, it is best to throw talk of petro-goods under GST out of the window. Outraging over high pump prices may give talking points for out-of-work former finance ministers like P Chidambaram, but it is neither good politics not good economics (for reasons why one says this, read here).