Bring VAT on par with HP, UT: Petro dealers

CHANDIGARH: In the wake of reduction in Value Added Tax (VAT) by Chandigarh recently, petroleum dealers in Punjab, especially in border areas, apprehend that if Haryana also reduces the VAT on petroleum products, it will become difficult for around 800 petrol pump dealers to operate in the border districts of Sangrur, Patiala, Bathinda, Mohali, Ropar and Hoshiarpur.

Tribune News Service

Chandigarh, October 22

In the wake of reduction in Value Added Tax (VAT) by Chandigarh recently, petroleum dealers in Punjab, especially in border areas, apprehend that if Haryana also reduces the VAT on petroleum products, it will become difficult for around 800 petrol pump dealers to operate in the border districts of Sangrur, Patiala, Bathinda, Mohali, Ropar and Hoshiarpur.

Chandigarh and Himachal Pradesh reduced VAT on diesel and petrol by 5 per cent and 1 per cent, respectively, recently.

According to dealers, Punjab charges 36.13 per cent VAT on petrol, Himachal Pradesh 26 per cent, Haryana 26.25 per cent, Jammu & Kashmir 29.9 per cent and Chandigarh 19.74 per cent. Due to high VAT rate, petrol in Punjab is costlier between Rs 3.57 and Rs 8.11 per litre as compared to other states.

Similarly, in case of diesel, Punjab charges 17.36 per cent VAT, Haryana 17.22 per cent, Himachal 15 per cent and Chandigarh 11.4 per cent.

With the reduction in VAT on fuel in Chandigarh, diesel in the Union Territory is cheaper by Rs 2.23 per litre as compared to neighbouring Mohali district, which falls under Punjab. Similarly, petrol in Chandigarh is cheaper by Rs 8.11 per litre. At present, petrol price in Mohali is Rs 73.77 per litre.

Gurmeet Monty Sehgal, spokesman for the Petrol Pump Dealers Association, Punjab, said, “With the reduction in VAT rates by Chandigarh, petrol pump dealers especially in Mohali and Ropar districts are badly affected and are on the verge of closure. Now, the dealers fear that if Haryana also takes a call on VAT reduction on the lines of other BJP-rule states, the fate of nearly 800 outlets in Punjab along the eight districts of the state will be in doldrums.”

“Our survival is now in the hands of the government and the Congress leaders should remember the promises made to us before the Assembly elections. We request the state government to bring the VAT rates on par with the neighbouring states to give fillip to the trade,” said Sehgal.

“Once the rates are on par, there will be unprecedented growth in the revenue for the state government,” said Ashwinder Mongia, president of the Mohali District Petro Dealers.