BJP walks out of Assembly over hike in VAT on petrol, diesel

Shimla, March 27

The BJP today staged a walkout in the Vidhan Sabha following heated exchanges between the ruling and Opposition party members on the issue of hike in VAT on petrol and diesel in Himachal Pradesh.

The BJP members were not satisfied by the reply of Excise and Taxation Minister Prakash Chowdhary regarding the  hike and said the benefit of cut in oil prices by the Centre has not benefitted the people in the state due to increase in VAT.

The Minister said that the VAT on petroleum products was less in Himachal Pradesh as compared to neighbouring states of Punjab and Haryana and said about six other states have also raised  VAT.

He said the NDA government increased the excise duty on these products four times, neutralising the impact of price cut.

The Minister said Punjab Deputy Chief minister Sukhbir Singh Badal and Haryana Finance Minister Capt Abhimanyu phoned him several times and requested for increasing VAT on these products.

He said VAT on diesel and petrol was 11.50 per cent in Himachal, while it was 12 per cent in neighbouring states and 20 per cent in Uttarakhand.

Rejecting the demand of former Chief Minister P.K. Dhumal for reduction in VAT, the Minister said the state earned revenue of Rs 12.40 crore due to hike in VAT.

Not satisfied by the Minister’s reply, BJP members alleged that the government was not interested in giving relief to the people and staged a walkout. — PTI