Supporting the ongoing agitation by the petrol and diesel dealers of the State, Punjab Congress on Sunday demanded bringing VAT on petrol and diesel at par with the neighbouring States of Haryana and Himachal Pradesh. The party maintained that the move would generate additional revenue of Rs 300 crore for the state, and give much-needed relief to the common man.
Punjab leader of Opposition Charanjit Singh Channi, who joined the agitation of Punjab Petrol and Diesel Dealers’ Association in Mohali on Sunday, said that VAT on petrol in Punjab is 36.47 per cent against average of 27 per cent in adjoining States. “This has made petrol in Punjab expensive by about Rs 5.96 as compared to Haryana, resulting in total shift of petroleum business to adjoining States which encourages rampant smuggling and pilferage from across the borders,” he said.
“Similarly, diesel prices are made uniform in July 2015 in the northern states. However, VAT in Haryana is 17.22 percent as compared to 17.67 percent presently being levied in Punjab creating a difference of about 20 paise per litre of diesel,” he said.
Channi added that the state-specific cost (SSC) or entry tax on crude oil was withdrawn by IOCl in Haryana with effect from March 10, 2016, making Punjab further expensive in diesel by about 60 paisa per litre as compared to Haryana.
Supporting the Association’s demands, Channi said that the Congress party support the genuine demands of the dealers and asked them to intensify their agitation state-wide in case the government did not accept their demands.
“If the Congress is voted to power, we will pressurise the IOCl to remove SSC component of pricing of petrol and diesel. The oil companies are overcharging this amount,” he said.
Also lambasting Badal Government for taking back freebies to farmers by way of cess and VAT on consumption of diesel and petrol, Channi said that farmer should understand ‘Raaj Nahin Sewa’ what Parkash Singh Badal is doing for them.