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Parrikar govt mulls abolishing VAT on petrol

Petrol in Goa may become cheaper by Rs 11 per litre if the Manohar Parrikar-led BJP government abolishes the Value Added Tax (VAT) on petrol when it presents the maiden budget on March 21.



Panaji: Petrol in Goa may become cheaper by
Rs 11 per litre if the Manohar Parrikar-led BJP government
abolishes the Value Added Tax (VAT) on petrol when it presents
the maiden budget on March 21.

The Chief Minister has indicated that the budget will
recommend zero value added tax (VAT) on petrol which would in
effect become cheaper by Rs 11 per litre.

Petrol costs Rs 65 a litre in Panaji.
"Compared to neighbouring Maharashtra, the prices will
be cheaper by Rs 16," Parrikar told PTI, adding that BJP in
its election manifesto had assured of slashing the rates.

VAT on petrol in the state is levied at 20 per cent and
that on diesel, 19 per cent.

The state government officials in the know said that the
move would result into an additional annual revenue burden of
around Rs 100 crore on the state exchequer.

Parrikar, who also holds finance portfolio, is also
expected to announce sops like an allowance of Rs 1,000 per
month for housewives, unemployment allowance to educated youth
besides measures to stabilise prices of LPG cylinders.

"All the announcements included in the manifesto would
incur additional liability of Rs 550 crore. However, we will
have additional resource mobilisation to mop up the revenue,"
he said, refusing to elaborate.

Meanwhile, sources in the government stated that
Parrikar might impose additional duty on liquor and also tax
iron ore dumps (unused ore) at various mining sites.

The state budget had last year announced a green cess
on the dumps but the recommendations never materialised due to
pressure from mining lobby.

PTI

From Zee News

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