UP refuses to slash sales tax on petrol and diesel
Uttar Pradesh government on Thursday ruled out slashing sales tax on petrol and diesel as has been done by some other states to partly offset increase in petroleum prices.
By PTI |
NEW DELHI: Uttar Pradesh government on Thursday ruled out slashing sales tax on petrol and diesel as has been done by some other states to partly offset increase in petroleum prices.
"We don't have any such intention (to reduce sales tax on petrol and diesel) as the revenue from this tax goes for devlopment works," state Agriculture Minister Ashok Bajpai told repoters on the sidelines of the VAT panel meeting here today.
He said UP imposes one of the lowest sales taxes on petrol and diesel compared to other states. The state levies 25 per cent sales tax on petrol and 20 per cent on diesel.
Bajpai also demamaded 25 per cent subsidy from the Centre on value of diesel used by the farmers.
The Centre on June 5 raised the prices of petrol by Rs 4 a litre and diesel by Rs 2.
Following such a steep hike, some states governments slashed the sales tax to tone down the effect of price rise.
Maharashtra, Andhra Pradesh, Tamil Nadu and Delhi have already effected the change in the sales tax structure to mitigate the price hike in petrol and diesel.
In a letter to petroleum Minister Murli Deora and Agricultutre Minister Sharad Pawar, Bajpai said the subsidy is required to ensure that farmers do not leave farming.
Because of rising input costs, agriculture is becoming unbearable and a loss making venture, he said.
Uttar Pradesh, besides Tamil Nadu, hasnot introduced VAT so far.
Speaking on VAT, Bajpai said no decision has been taken on introducing VAT in the state.
"We don't have any such intention (to reduce sales tax on petrol and diesel) as the revenue from this tax goes for devlopment works," state Agriculture Minister Ashok Bajpai told repoters on the sidelines of the VAT panel meeting here today.
He said UP imposes one of the lowest sales taxes on petrol and diesel compared to other states. The state levies 25 per cent sales tax on petrol and 20 per cent on diesel.
Bajpai also demamaded 25 per cent subsidy from the Centre on value of diesel used by the farmers.
The Centre on June 5 raised the prices of petrol by Rs 4 a litre and diesel by Rs 2.
Following such a steep hike, some states governments slashed the sales tax to tone down the effect of price rise.
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Maharashtra, Andhra Pradesh, Tamil Nadu and Delhi have already effected the change in the sales tax structure to mitigate the price hike in petrol and diesel.
In a letter to petroleum Minister Murli Deora and Agricultutre Minister Sharad Pawar, Bajpai said the subsidy is required to ensure that farmers do not leave farming.
Because of rising input costs, agriculture is becoming unbearable and a loss making venture, he said.
Uttar Pradesh, besides Tamil Nadu, hasnot introduced VAT so far.
ADVERTISEMENT
Speaking on VAT, Bajpai said no decision has been taken on introducing VAT in the state.
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