NCR may tank up on uniform fuel sales tax
Consumers in the NCR may be cushioned to some extent from the hike in diesel and petrol prices that is likely to be announced by the Centre this week.
By TNN |
NEW DELHI: Consumers in the national capital region (NCR) may be cushioned to some extent from the hike in diesel and petrol prices that is likely to be announced by the Centre this week. The NCR Planning Board is working on a proposal to apply a unified sales tax of 10-12% on petrol and diesel sold in Uttar Pradesh, Delhi, Haryana and Rajasthan.
At present, rates of taxation vary widely ��� from a minimum of 20% to 28% in case of petrol and from 12% to 21% in case of diesel ��� across NCR states. While all four states will benefit from the proposed unification in sales tax on petrol, the proposed sales tax rates for diesel will benefit Rajasthan and UP more as rates in Delhi and Haryana are relatively low.
However, for the proposal to get through, an amendment has to be brought about in the NCR Planning Board Act to empower the Board to take such decisions. The Centre is mulling such an amendment, sources said. At present, it is the prerogative of the state governments to take decision on issues such as fixing sales tax rates.
The empowered NCR Board would also rationalise irrecoverable levies like octroi and entry tax on crude oil and petroleum products so that prices are uniform throughout the NCR.
The proposal is part of the policy to empower NCR Board to devise a common deadline to arrive at a consensus on economic policies for the NCR states. ���We have given the states a deadline to arrive at a consensus on the issues. The states are expected to get back to us soon. Then only, we would be able to frame the policy,��� urban development secretary M Ramachandran said.
The efforts towards achieving a common economic regional development zone could only be achieved once there is uniform taxation, a senior official said. ���The NCR planning board, which acts as planning body, would be given more teeth to take decisions related to taxation,��� the official added.
While sales tax on petrol is highest in Jaipur at 28%, it is highest for diesel in Noida and Ghaziabad at 21%. Delhi and Gurgaon charge sales tax on petrol and diesel at comparatively lower rates. In Delhi, sales tax on petrol and diesel is 20% and 12.5%, respectively. In Gurgaon, petrol attracts a sales tax of 20% while diesel attracts 12% sales tax.
The share of tax in the selling price of petrol in Sri Lanka, Thailand and Pakistan is 37%, 24% and 30%, respectively. In case of diesel, the share of taxes in the prices prevailing in these countries is lower than 20%.
In Delhi, the tax component accounts for 52% of the petrol price. For diesel, the share is lower at 35% in the city. It is even higher in other states.
At present, rates of taxation vary widely ��� from a minimum of 20% to 28% in case of petrol and from 12% to 21% in case of diesel ��� across NCR states. While all four states will benefit from the proposed unification in sales tax on petrol, the proposed sales tax rates for diesel will benefit Rajasthan and UP more as rates in Delhi and Haryana are relatively low.
However, for the proposal to get through, an amendment has to be brought about in the NCR Planning Board Act to empower the Board to take such decisions. The Centre is mulling such an amendment, sources said. At present, it is the prerogative of the state governments to take decision on issues such as fixing sales tax rates.
The empowered NCR Board would also rationalise irrecoverable levies like octroi and entry tax on crude oil and petroleum products so that prices are uniform throughout the NCR.
The proposal is part of the policy to empower NCR Board to devise a common deadline to arrive at a consensus on economic policies for the NCR states. ���We have given the states a deadline to arrive at a consensus on the issues. The states are expected to get back to us soon. Then only, we would be able to frame the policy,��� urban development secretary M Ramachandran said.
The efforts towards achieving a common economic regional development zone could only be achieved once there is uniform taxation, a senior official said. ���The NCR planning board, which acts as planning body, would be given more teeth to take decisions related to taxation,��� the official added.
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While sales tax on petrol is highest in Jaipur at 28%, it is highest for diesel in Noida and Ghaziabad at 21%. Delhi and Gurgaon charge sales tax on petrol and diesel at comparatively lower rates. In Delhi, sales tax on petrol and diesel is 20% and 12.5%, respectively. In Gurgaon, petrol attracts a sales tax of 20% while diesel attracts 12% sales tax.
The share of tax in the selling price of petrol in Sri Lanka, Thailand and Pakistan is 37%, 24% and 30%, respectively. In case of diesel, the share of taxes in the prices prevailing in these countries is lower than 20%.
In Delhi, the tax component accounts for 52% of the petrol price. For diesel, the share is lower at 35% in the city. It is even higher in other states.
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