Punjab unlikely to cut VAT on petrol, diesel

Chandigarh, April 28

Punjab government is unlikely to impose a cut on VAT it levies on both petrol and diesel. Prime Minister Narendra Modi had on Wednesday asked all states to reduce VAT on fuel prices so as to benefit the common man.

Though there was no official communication from the state government or the ruling Aam Aadmi Party, statements issued by two leaders, including chief spokesperson of the party, clearly indicated that there would be no roll back in VAT on retail fuel prices.

The VAT on fuel is the major source of income for Punjab, post the roll out of Goods and Services Tax. In the past fiscal, the otherwise cash-crunched state earned over Rs 6,300 crore from VAT. With the AAP government committing itself to provide many doles like 300 units of free power and monthly allowance of Rs 1,000 to all women, the government cannot afford to cut its income.

In a statement released today, senior MLA Aman Arora said that AAP supports the fact that the common man should not be burdened with additional hike in price of petrol and diesel.

“But we would like to remind them that during the past five years, the charges on petrol and diesel have been increased by 250 per cent. We want to remind BJP that even when international prices of crude oil have hit rock bottom in 2020, the BJP did not provide any relief to the common man. This was done to benefit some corporate houses. Even after elections are over, the prices of these fuels are increased in continuity by the BJP-led Centre. By asking states to reduce VAT on fuels, the GoI cannot absolve itself of its responsibility towards the common man. They should realise their responsibility and prices should be first rationalised by them,” he said.