Demanding VAT cut on petrol, diesel, BJP stages walkout

SHIMLA: Persisting with its demand for reduction in VAT on diesel and petrol to provide relief to the common man, an agitated BJP today staged a walkout in the Assembly with the government refusing to make any concession to reduce prices.

Leader of the Opposition PK Dhumal and other BJP MLAs walk out at the Vidhan Sabha in Shimla on Friday. photo: Amit Kanwar

Pratibha Chauhan

Tribune News Service

Shimla, March 27

Persisting with its demand for reduction in VAT on diesel and petrol to provide relief to the common man, an agitated BJP today staged a walkout in the Assembly with the government refusing to make any concession to reduce prices.

“We have no plans whatsoever to reduce VAT on petrol and diesel as we need to generate resources. Moreover, if the Centre wanted to give relief to the common man, they should have reduced the excise duty which was enhanced four times,” said Excise and Taxation Minister Prakash Chaudhary.

He said an income of Rs12.40 crore had been generated by the Excise Department since VAT was increased. There was an uproar as Chaudhray was speaking with the Opposition countering him by questioning the decision to renew liquor vends against an earlier decision to auction them to generate additional Rs500 crore revenue. Efforts by CM Virbhadra Singh to pacify BJP members proved futile as they left the House in protest.

Chaudhary justified the hike of Rs1.50 and 90 paisa per litre in the price of petrol and diesel, respectively, while replying to a query by Virender Kanwar during question hour.

Chaudhary said the hike was made after Cabinet approval and even now the VAT in HP was less than in Punjab, Uttrakhand, J&K and Haryana. His repeated reference that a request had been made by Punjab Deputy CM Sukhbir Badal and Haryana Finance Minister to him for enhancing VAT also evoked strong protest from BJP MLAs.

The BJP insisted that in case the intentions of the government were genuine, it should have reduced VAT. “You are using the Punjab and Haryana plea to suit your convenience but the truth is that the state government has no intention of giving benefit to the common man,” the former CM said. He said since there was negligible air and rail connectivity in the state and a majority of people were dependent on road transport, the state government should have reduced VAT.