Chhattisgarh govt mulls VAT reduction on petrol, diesel

RAIPUR: Chhattisgarh government might expedite the move to reduce VAT on petrol and diesel after Congress-ruled Punjab slashed tax on petroleum products to mitigate the burden on the people.
After the Central government reduced the excise duty on petrol and diesel by Rs 5 and Rs 10 respectively, Chhattisgarh commercial tax (GST) minister TS Singh Deo hinted that the Chhattisgarh government may reduce the Value Added Tax (VAT) on petrol and diesel.The minister indicated that the commercial tax department is preparing a proposal for reduction of VAT on petrol and diesel and the proposal would be presented before chief minister Bhupesh Baghel.
Talking to the media on Saturday evening, Minister TS Singhdeo said that Chief Minister Bhupesh Baghel has asked him to explore the possibilities to reduce VAT so that the people of the state may avail the benefit of fuel price reduction in the state.
"Chhattisgarh is surrounded by other states from all sides. In such a situation, the prices of neighbouring states will also have to be taken into account. Their details have been requested. If we charge more than neighbouring states, then people from the border areas will go there to fill oil. This also results in loss of VAT. If we reduce it as compared to the neighbours, then maybe we will get more volume hence new proposal will also be taken into account," he added.
Chhattisgarh chief minister Bhupesh Baghel said on late Saturday night that, "Price of petrol and diesel could be reduced up to Rs 60 per litre if the central government withdraws the hiked excise duty on fuel. During the UPA government, the excise duty was around Rs 9 and currently, it has increased to Rs 32."
"Congress government has not increased VAT in Chhattisgarh. The existing VAT rates are the same fixed by previous BJP government led by then chief minister Raman Singh," he added.
Meanwhile, taking a dig at the Chhattisgarh government, state BJP president Vishnu Deo Sai criticised chief minister Baghel for not reducing VAT on petrol and diesel in Chhattisgarh. “Central Government has reduced excise duty on petrol and diesel to give relief to people, but the Chief Minister Bhupesh Baghel, instead of reducing VAT on fuel, in busy in power-struggle to save his position,” he added.
Janta Congress Chhattisgarh (J) State President Amit Jogi took to Twitter to appeal to Chief Minister Bhupesh Baghel to reduce VAT on petroleum products to provide relief to the consumers from the burden of fuel inflation.
In Raipur district, the price of petrol is Rs 101.91 per litre and diesel is Rs 93.80. Earlier, the price of petrol hiked to Rs 107.7 per litre and diesel hiked to Rs 106.36 per litre.
Around 23 states and union territories have slashed VAT on the fuel, providing relief to consumers. But there are 13 states and union territories that have not reduced VAT on the fuel including Chhattisgarh, Maharashtra, NCT of Delhi, West Bengal, Tamil Nadu, Telangana, Andhra Pradesh, Kerala, Meghalaya, Andaman and Nicobar, Jharkhand, Odisha and Rajasthan