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Petroleum and Alcohol: The main sources of income for states.

Shillong: The empowered committee of state finance ministers today unanimously decided to keep petroleum and alcohol out of the proposed Goods and Service Tax (GST) stating that these were the main sources of income for states.

"There is total unanimity that these (petroleum and alcohol) should be kept out of GST," Abdul Rahim Rather, chairman of the empowered committee of state finance ministers, told reporters here.

Mr Rather, who is also the finance minister of Jammu and Kashmir, said that the decision to exclude these two items from the proposed GST was based on an appeal made by states.

The central government, in its revised draft of the constitution amendment bill, had proposed that fuel and liquor should be brought under the ambit of GST.

"These are the main sources of income for the states and if they (petroleum and alcohol) are included in the GST the states will stand to lose a lot," he said......http://profit.ndtv.com/news/economy/article-petroleum-and-alcohol-to-be-kept-out-of-gst-empowered-committee-372543

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