Dehra Dun, June 27: Uttarkhand today said it would waive off VAT (value added tax) on kerosene, and would not charge VAT on the amount recently increased for diesel and LPG after the Centre on Friday decided to hike prices of petroleum products.
Chief Minister Ramesh Pokhriyal Nishank said his government was taking the step to lessen the sufferings of the people reeling under the pressure of rising inflation due to “anti-poor” UPA government at the centre. Uttarkhand now joins a bevvy of states, including Haryana that have exempted tax on various petroleum products. West Bengal Chief Minister Mamata Banerjee on Saturday decided to withdraw sales tax on cooking gas. The decision would reduce the price of a LPG cylinder in that state by Rs 16.
Fianance Minister Pranab Mukherjee is also said to be considering writing to Congress-ruled states, asking their Chief Ministers to reduce state levies on at least LPG to reduce the impact of the price hike on the common man. Uttarkhand Chief Minister made the announcement today after leading a barefoot march against the recent hike in prices of LPG, Kerosene and diesel.
The new announcements would put a burden of Rs 51 cr on the state exchequer, Nishank added.
The VAT on kerosene oil was being collected at the rate of 4.5 percent and tax exemption would cost the state exchequer by Rs 8 Cr, officials said.
Similarly, VAT on diesel is 21 percent and the state would lose Rs 35 cr by not charging the tax on the recently increased amount of Rs 3 per litre. For LPG, however, there is no VAT on gas cylinders in the state but the increased amount of Rs 50 per cylinder would also put a burden of Rs 8 cr on the state, officials added. PTI