Ruchika M Khanna
Press Reporter News Service
Chandigarh, July 28
Amid the decision to close down petrol pumps for 9 hours throughout Punjab on Wednesday in protest in opposition to the excessive Worth Added Tax (VAT) charged on gasoline, the state authorities has refused to roll again the tax.
VAT on petrol and diesel has been hiked twice throughout this monetary 12 months by the federal government — in Might and in June. Whereas the hike has led to a rise within the much-needed tax assortment for the cash-strapped authorities, retail gasoline pump homeowners, particularly these in districts bordering Chandigarh, Haryana and Himachal Pradesh, stated their gross sales had gone down drastically as folks most well-liked to purchase gasoline from neighbouring states.
Petrol in Chandigarh is cheaper by Rs 5.02 per litre, in Haryana by Rs 4.43 per litre and in Himachal Pradesh by Rs 4.75 per litre. Then again, diesel in Chandigarh is cheaper by Rs 2.70 per litre, in Haryana by Rs 2.51 per litre and in Himachal Pradesh by Rs 3.86 per litre. “This disparity in costs has ensured a fall within the gross sales for retail gasoline shops in border districts. Unable to bear these losses, a petroleum pump proprietor in Mohali dedicated suicide final week. To protest in opposition to this, now we have determined to shut down all shops from eight am to five pm on Wednesday,” Paramjit Singh Doaba, president of the Punjab Petroleum Sellers’ Affiliation, instructed The Press Reporter.
Figures accessible from the Taxation Division reveal that the state earned Rs 707.20 crore as VAT on the sale of diesel and Rs 325.407 crore as VAT on the sale of petrol in June. With different sources of state’s taxes exhibiting little indicators of restoration, it will not be potential for the federal government to roll again the VAT hike.