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If global prices of crude oil go up, state VAT collection on petrol and diesel also goes up as it a percentage over the base price (inclusive of excise). What is the best way for states to reduce VAT on petrol and diesel?

If global prices of crude oil go up, state VAT collection on petrol and diesel also goes up as it a percentage over the base price (inclusive of excise). What is the best way for states to reduce VAT on petrol and diesel?

Levy an absolute value of tax instead of percentage of base price

Reduce the VAT rate itself

Do nothing and let higher fuel prices reduce consumption and pollution

Can't Say

Transforming India May 24

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