State fuel dealers threaten strike over high VAT rates

Our Correspondent

Sirsa, August 10

In Haryana, VAT on diesel is significantly higher than in the neighbouring states of Himachal Pradesh, Punjab and Chandigarh. This disparity is causing the state’s revenue to decline. The All Haryana Petrol Pump Dealers Association has been repeatedly alerting the government of the matter since 2017, but no action has been taken. Association president Anil Kumar Yadav warned the government of taking drastic measures if the problem was not resolved within a week. Yadav was addressing mediapersons on Friday after a zonal-level meeting in Sirsa.

Yadav noted that VAT rates increased from 8.8 per cent under the Congress rule to 16.8 per cent under the BJP government. This hike led to a 13.81 per cent drop in diesel consumption in Haryana over the past five years, while other states had witnessed an increase. Due to the higher VAT, diesel was being purchased from neighbouring states, resulting in revenue loss for Haryana’s traders.

The association urged the government to either reduce Haryana’s VAT rates or equalise them with those of their neighbouring states. They also expressed concern over how the high VAT and lower commissions were pushing petrol pumps towards closure. If the situation did not improve, the dealers warned of launching a potential statewide strike.

Fatehabad zonal incharge Gurpreet Singh added that despite a 2017 committee recommendation to increase commissions every six months, no action had been taken by the government.