Goa government mulling over to abolish VAT on petrol

PANAJI: Petrol in Goa is likely to become cheaper by Rs 11 per litre from its current price if the Manohar Parrikar-led BJP government abolishes the Value Added Tax (VAT) on petrol when it presents the maiden budget on March 21.

The chief minister has indicated that the budget will recommend zero value added tax (VAT) on petrol which would in effect become cheaper by Rs 11 per litre.

In the capital city of Panji petrol costs Rs 65 per litre.

"Compared to neighbouring Maharashtra, the prices will be cheaper by Rs 16," Parrikar told PTI, adding BJP in its election manifesto had assured to slash the prices.

VAT on petrol in the state is 20 per cent and that on diesel 19 per cent.

The state government officials in the know claimed that the move would result into an additional annual revenue burden to the tune of Rs 100 crore on the state exchequer.

Parrikar, who also holds finance portfolio, is also expected to announce sops like an allowance of Rs 1,000 per month for housewives, unemployment allowance to educated youth besides measures to stabilise prices of LPG cylinders.

"All the announcements included in the manifesto would incur additional liability of Rs 550 Crore. However, we will have additional resource mobilisation to mop up the revenue," he said refusing to elaborate.

Meanwhile, sources in the government stated that Parrikar might impose additional duty on liquor and also tax iron ore dumps (unused ore) at various mining sites.

The state budget had last year announced a green cess on the dumps but the recommendations never materialised due to pressure from mining lobby.