Ranchi

Petrol, diesel prices to go up as Govt raises VAT

PNS

The first Cabinet meeting of the Raghubar Das Government held outside the State Capital at Dumka, which was also the first after the Cabinet expansion, resulted in digging deep into the common man's pocket. The Government has hiked value-added tax (VAT) on petrol and diesel which would be levied uniformly at 22 per cent. Earlier, the rates of VAT were 20 per cent for petrol and 18 per cent for  diesel in the State. One rupee of cess per litre has also been imposed on the fuels.

The decision though was in the offing since slice in the prices of the automobile fuels continuing there for quite some time. The price cut has on the one hand eased burden on the consumers but at the same has taken a severe dent into the tax revenue of the Government. "The hike would bring parity in VAT with neighbouring Odisha and West Bengal. This would help the Government with some additional revenue just before the Budget," said a senior official who refused to give any assumptive gain the Government is going to get. The new rate would be applicable after notification is issued.

Though, Opposition parties have decided to hold protests across the State against the decision. The Congress on Monday would burn effigy of the Government and the JVM would arrange similar protests. This apart, the Cabinet gave its nod to 33 proposals related to various Departments. A decision to call the Budget Session of the Assembly from February 27 has also been taken. The session would continue till March 30. Addressing the media after the meeting, Cabinet Secretary NN Pandey also informed about formation of the 3rd State Finance Commission.

"The Government has decided to form 3rd State Finance Commission. Under the provisions of Panchayats and Urban local Bodies guidelines in Jharkhand there is a system to share revenue with panchayats, district councils and nagarpalikas. The Finance Commission recommends about this to the State Government," said Pandey.

Two State Finance Commissions have been formed in Jharkhand so far. The tenure of the first was from 2004 to 2009 while the second had existed between 2009 and 2014. "The tenure of the 3rd Finance Commission would be from January 28, 2014 to January 27, 2019," added the Cabinet Secretary. To check the circulation of fake currencies, one nodal police station would be formed in every district. 

Provision for transportation allowance has been made as compensation under land acquisition for households. Rs 10,000 would be paid for that also to elderly, SC/ST, BPl persons. This apart, the Government has upped income limit for getting assistance under critical disease. Now anyone with annual income up to Rs 72,000 would be eligible for the benefit which was earlier Rs 10500 for rural and Rs 12,000 in urban areas.

Designating more importance to the second capital of the State, Dumka, the Government has decided to hold Cabinet meetings here in every three months. Also Chief Minister's Office at Dumka would be strengthened further with deployment of designated officer. Ministers would be asked to hold important meetings at Dumka so that local problems can be addressed in a better manner.

"Shravani mela of Deoghar, Hijla mela, Basukinath mela and Itkhori, maghi mela of Sahebgunj have been declared as 'rajkiya mela' or State fairs," said Pandey. Also, SC/ST students would be provided skill development training for employment with the help of C-DAC. The Cabinet also agreed to form a Water Tribunal for Jharkhand to harness water for drinking and irrigation purposes and constructed another post for Inspector-General of Police in the State. 

The NCC cadets would now be getting Rs 10 per head as breakfast allowance. Showing its solidarity with Indian cricket team the Cabinet on its part congratulated it for the thumping victory over South Africa in the World Cup match on Sunday.