Maharashtra - CM urged to reduce VAT on petrol,
diesel
Pune based Sajag Nagrik Manch has sent a memorandum to
state chief minister Prithviraj Chavan, deputy chief
minister Ajit Pawar and chief secretary Ratnakar Gaikwad
demanding that the state government reduce value added
tax (VAT) on petrol and diesel to give some relief to
common people.
Vivek Velankar, founder of the Manch said, "Maharashtra is one of
the very few states who are charging VAT on petrol and diesel at 26 %. Also
there is Re 1 per litre state cess on petrol and diesel. Most of the other
states are charging VAT at the rate of 20 %."
Since 2008 when Maharashtra government first lowered VAT on petrol and diesel by
2% to take it from 28 % to 26 %; the petrol and diesel prices have gone up by 40
% and consumption has gone up by 20 %. So the government is benefited by
automatic increase in revenue by 60 % in last three years.
After the Rs 3.14 per litre rise in petrol price from September 9 the state
governments revenue will further go up by 1.5 %. So even if the government
decided to cut VAT on petrol by 1.5 % there will be no impact on the state
budget but the consumers can get some relief.
Velankar said that since last two years "Aam Adami" has been reeling under
tremendous pressure of price rise and his life has become miserable. It is the
need of the hour to give him some relief, he said in the memorandum.
