BHUBANESWAR: Union Minister for Petroleum and Natural Gas Dharmendra Pradhan on Thursday once again appealed to the State Government to reduce VAT on petrol and diesel in order to bring down prices of the fossil fuel.
The Centre has announced further reduction of Central excise duty on petrol and diesel by `2.50 per litre with immediate effect. Several States have also slashed tax rates on the two items shortly after the announcement of tax reduction by Union Finance Minister Arun Jaitley in New Delhi. The State Government should take similar measures to provide further relief to consumers especially, the poor section of the society, Pradhan told mediapersons at a hurriedly convened press meet here.
“I request Chief Minister Naveen Patnaik to reduce VAT on petrol and diesel by `2.50 per litre as done by other States,” he said.
The Union Minister said his earlier request to the Chief Minister was rejected by the State Government. “I have no hesitation to appeal to the State Government once again to consider for a tax reduction on the two essential items. I hope the Chief Minister will consider my request this time,” Pradhan said.
The State Government has made a lot of hue and cry over the issue of fuel prices. It has also accused the Centre of being anti-poor. The Centre has already reduced the Central Excise twice and it is high time the State Government took a call in the larger interest of poor and middle class in Odisha, Pradhan said.
Admitting that the rising fuel price has agitated the people, Pradhan said a number of factors are responsible for the surging oil prices which are beyond the control of the Government. Soaring prices of crude oil in international market and fluctuation in currency exchange rates are the two major factors.
He said reduction in Central excise and VAT is the only way for the Centre and States to bring down the fuel price. The Centre has already reduced the excise duty by `2 per litre from October last year.
State to look into Centre’s appeal
Bhubaneswar: Odisha Government on Thursday maintained that it will examine the Centre’s request to States to provide additional relief on fuel price. Announcing the Centre’s decision to cut petrol and diesel prices by `2.50 per litre, Union Finance Minister Arun Jaitley had asked the State Governments to match the move with a similar reduction in sales tax or VAT. “We are examining the appeal made by the Centre to give relief to people on fuel price,” State Finance Minister Sashibhusan Behera told mediapersons here. Referring to the decision taken by some States to cut fuel prices after the Centre’s appeal, Behera said the situation in all the States are not similar. Besides 26 per cent VAT, Maharashtra also has nine per cent cess on a litre of petrol, he said. Behera said Odisha Government is examining all aspects of the Centre’s move and will take a decision. He said the State Government will lose VAT of 65 paise per litre after the Centre’s decision to bring down petrol and diesel prices by `2.50 per litre. The consumers will get a relief of `3.15 per litre, he added.