FICCI joins the chorus, wants fuel levies lowered in Gujarat

The Federation of Indian Chamber of Commerce and Industry (FICCI) has urged central and state government to reduce the tax on petrol and diesel as it is affecting the competitiveness of various industrial sectors. They also demanded that petroleum products be brought under the Goods and Services Tax (GST) regime to reduce the burden on the taxpayer. Transporters said that the rise in fuel prices has come at a time when the sector is facing a slowdown in demand, shrinking the margins of the truckers. High fuel prices coupled with a slowdown in demand on a prolonged basis can make the business unviable, they warned.

Talking to media persons on the sidelines of a seminar on Technical Textiles in Ahmedabad, Rajiv Vastupal, chairman of Federation of FICCI in Gujarat, said that prices of petrol and diesel in the country have gone through the roof, increasing the input costs of various sectors in the industry. "At a time when the market is already competitive, players are catering to customers by shrinking their margins. Under such circumstances, the government should reduce the taxes on petrol and diesel to bring down the prices," said Vastupal.

Players also suggested that petrol and diesel be brought under the jurisdiction of Goods and Services Tax (GST), which will reduce the tax burden on the end users. "High fuel prices have raised the input cost for the industry. Textiles and ceramics are the worst affected," said Patwari. Brent Crude was quoted at $79.24 per barrel, while Dollar was quoted equal to 68 Rupees on Tuesday.

Transporters said that the rise in prices of petrol and diesel has come at a time when transports and logistics sector is facing a slowdown in demand. Transporters are already compromising on the profit margins but fear that if the situation continues longer, transporting goods may not be viable.

"The demand for transportation of goods has already dropped by 25 per cent. The rates for transporting goods has consequently fallen. On top of it, the fuel prices have risen by about 18 per cent in past four months. As of now, transporters are working on a profit margin, but if the situation is prolonged, we may end up with losses," warned Mukesh Dave, chairman of Transport Committee of Gujarat Chamber of Commerce & Industry (GCCI).

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Transporters said that the rise in prices of petrol and diesel has come at a time when transports and logistics sector is facing a slowdown in demand