Saturday, 04 December 2021

Reduce VAT on diesel and petrol : Delhi petrol dealers association to Delhi CM

Reduce VAT on diesel and petrol : Delhi petrol dealers association to Delhi CM

Petrol dealers of the Delhi association have written a letter to Chief Minister Arvind Kejriwal asking to cut VAT on petrol and diesel. According to the dealers, the reduction in VAT will boost sales and might prevent a financial crisis. It said that Delhi has become expensive by more than ₹9 in petrol and ₹2 in diesel than neighboring Haryana and Uttar Pradesh.

Anurag Narain, President, Delhi-Petrol Dealers Association, wrote in the letter.

"Higher VAT in Delhi will have a negative impact resulting in insurmountable loss of sales of petrol pumps of Delhi and revenue to our state,"

Narain added.

"We request Delhi govt to decrease VAT, which might help during elections. Then our sales won't go to other states; sales here have decreased by 50%,"

The letter also highlighted the VAT structure of Delhi in the last few years. As per the letter by the dealers association, the VAT on petrol in the national capital increased to 30% in July 2020 from 20% in 2014. On the other hand, the VAT on diesel increased to 16.75% from 12.50% in the same duration.

Since 2014, the VAT on fuel has increased six times in the national capital. The last time the Delhi government hiked the VAT was July 31, 2020, on both fuel products.

Reduce VAT on diesel and petrol Delhi petrol dealers association to Delhi CM 1pixabay image

Read More: Govt reduce excise duty on petrol by Rs 5 and diesel by Rs 10

According to Narain, petrol sales have decreased from a monthly average of 11 crore liters in 2014 to 8 crore liters.

He said that diesel sales have more than halved from over 13 crores in 2014 to just over five crore liters at present. According to the dealers association, the average sales growth in Delhi's neighboring states, such as Haryana and Uttar Pradesh, has "double percentage figures."

At the moment, the cost of one liter of petrol in Delhi stands at ₹104.10 while in Noida it is ₹95.49, in Gurgaon ₹95.88, and Ghaziabad ₹95.24, respectively.

Both Uttar Pradesh and Haryana slashed VAT on petrol and diesel by ₹12 per liter last week. The move came as the Centre government reduced excise duty by ₹5 per liter on petrol and ₹ ten a liter on diesel amid spiraling fuel prices.

Narain has requested Delhi Chief Minster to reduce VAT more than Uttar Pradesh and Haryana to boost sales and revenue and prevent the smuggling of fuels.

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