U`khand: No VAT on kerosene; hikes on diesel

Last Updated: Tuesday, June 28, 2011 - 00:23

Dehra Dun: Uttarkhand on Monday said it would
waive off VAT (value added tax) on kerosene, and would not
charge VAT on the amount recently increased for diesel and LPG
after the Centre on Friday decided to hike prices of petroleum
products.

Chief Minister Ramesh Pokhriyal Nishank said his
government was taking the step to lessen the sufferings of the
people reeling under the pressure of rising inflation due to
"anti-poor" UPA government at the centre.

Uttarkhand now joins a bevvy of states, including Haryana
that have exempted tax on various petroleum products. West
Bengal Chief Minister Mamta Banerjee on Saturday decided to
withdraw sales tax on cooking gas. The decision would reduce
the price of a LPG cylinder in that state by Rs 16.

Fianance Minister Pranab Mukherjee is also said to be
considering writing to Congress-ruled states, asking their
Chief Ministers to reduce state levies on at least LPG to
reduce the impact of the price hike on the common man.

Uttarkhand Chief Minister made the announcement today
after leading a barefoot march against the recent hike in
prices of LPG, Kerosene and diesel.

The new announcements would put a burden of Rs 51 cr on
the state exchequer, Nishank added.

The VAT on kerosene oil was being collected at the rate
of 4.5 percent and tax exemption would cost the state
exchequer by Rs 8 Cr, officials said.

Similarly, VAT on diesel is 21 percent and the state
would lose Rs 35 cr by not charging the tax on the recently
increased amount of Rs 3 per litre. For LPG, however, there is
no VAT on gas cylinders in the state but the increased amount
of Rs 50 per cylinder would also put a burden of Rs 8 cr on
the state, officials added.

PTI



First Published: Tuesday, June 28, 2011 - 00:23

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