Congress to reduce VAT on petro products and fertilisers in Gujarat

AHMEDABAD: Congress party will reduce the value added tax ( VAT) on petro products and fertilisers in Gujarat, stated the first part of the manifesto announced by state party leaders on Tuesday.

General elections to the state legislature are scheduled by the end of this year. The announcement is a part of series of 12 announcements to be declared in a phased manner.

"These steps are intended to moderate inflationary pressure. Gujarat has the highest VAT on petro products amongst other states in India. The BJP government levies taxes on common man and gives freebies to the corporates. We will change the situation," said a party statement quoting leaders Arjun Modhwadia, Shankersinh Vaghela, Shaktisinh Gohil and Tushar Chaudhary.

Gujarat Congress president Modhwadia and leader of the opposition Gohil told media persons in city that a litre of diesel costs Rs 46.17 in Gujarat, while it costs Rs 45.26 in Maharashtra, Rs 43.23 in Dadra Nagar Haveli, Rs 43.22 in Div-Daman, Rs 39.92 in Haryana, Rs 43.31 in Uttaranchal, Rs 43.07 in Rajasthan, Rs 42.52 in J&K, Rs 39.94 in Punjab, Rs 43.31 in Bihar, Rs 42.34 in Assam and Rs 41.29 in Delhi.

Similarly a litre of petrol costs Rs 72.66 in Gujarat compared to Rs 70.21 in Dadra Nagar Haveli, Rs 70.19 in Div-Daman, Rs in Haryana, Rs 68.45 in Uttaranchal, Rs 71.53 in Rajasthan, Rs 71.28 in J&K, Rs 70.06 in Kerala, Rs 68.29 in Odisha, Rs 70.77 in Assam and Rs 67.79 in Delhi.

"Gujarat levies 15% VAT on CNG compared to 5-10% in other states. We plan to reduce VAT on petro products," they said. Congress also alleged that state government sells fertilisers of PSUs Gujarat State Fertilisers Company ( GSFC) and Gujarat Narmada Valley Fertilisers Company Limited ( GNFC) to other states to get subsidy from the central government instead of providing them to state's farmers.