Industry Odisha Bureau, May 22: Aiming to reduce the impact of soaring costs of fossil fuel across various sectors as well as on the common consumers in India under the current scenario of global crude oil volatility, sources claimed that the BJP/NDA-ruled state governments are mulling to minimize the burden by opting for a reduction in the Value Added Tax (VAT) being levied, especially, on diesel.
Since the Centre has affected a cut in the excise duty by Rs 10 per litre on diesel and Rs 3 per litre on petrol reportedly last month, the Centre would urge the state governments soon to reduce VAT levied, especially, on the transport fuel (diesel), because diesel remains a “key inflation driver owing to its extensive use across transportations, agricultural activities and industries, while petrol is primarily used for personal transport. Besides, rise in diesel price directly impacts a wide range of goods and services affecting India’s economy.”
It is being argued that 22 Indian states and most of the Union Territories (UTs) are currently being governed by the BJP and its allies under the banner National Democratic Alliance (NDA). Thus, “their coordinated approach to VAT reduction could yield significant results in diesel’s retail price control.”
Sources claimed, “The highest VAT rates levied on diesel are in Congress-ruled Telangana (27%), BJP-ruled Odisha (24%), BJP-ruled Chhattisgarh (23%), Congress-ruled Kerala (22.76%) and NDA-ruled Andhra Pradesh (22.25%), while BJP and NDA-ruled Delhi (16.75%), Uttar Pradesh (17.08%), Maharashtra (21%), Gujarat (14.9%), Bihar (16.37%) and Assam (22.19).”
As per reports, BJP-ruled Delhi and NDA-ruled Maharashtra have already reduced VAT on jet fuel.
