New Delhi: In the backdrop of a widespread opposition to sharp increase in fuel price, industry body Assocham Monday asked the government to reduce taxes on petrol and diesel, and shift towards specific rates.
The Centre and state governments must go in for reducing taxes on petrol and diesel, besides revamping the taxation structure of the auto fuels, it said.
"Petrol and diesel are not only the automobile fuels, but these are also fuel of the economy," Assocham President R N Dhoot said.
Reduced taxes on petrol and diesel will help in bringing down the prices which would lead to less financial burden on consumers, he added.
On May 23, in the steepest increase ever, petrol rates were raised by a massive Rs 7.54 per litre, the first hike in six months.
Besides, Assocham said the duty structure of petrol should be changed to specific base rather than ad valorem rate, which increases every time the price of the fuel is hiked.
"The duty structure should be such that specific levies be fixed per litre of petrol, irrespective of its sale price at the pump. This would save the consumers from the cascading effect," Assocham said.
First Published: Monday, May 28, 2012, 18:57