Pump dealers seek more cut in VAT

Aug 05, 2010 - Age Correspondent |

New Delhi

The petrol dealers in the city have sought intervention of the Centre in reducing the VAT on diesel in the city to bring it at par with that of Haryana and Punjab so that they do not continue to lose out on business.

Following protest from the dealers, the Delhi government had earlier rolled back the hike in VAT on diesel from 20 per cent to 12.5 per cent.
However, the rollback still could not wipe out the difference in diesel rates of the city and neighbouring districts in Haryana. The price of diesel continue to remain cheaper in the neighbouring states.
“Haryana and Punjab have kept the VAT on diesel at 8.8 per cent as a result of which the price of diesel continues to be high in the capital, which shares almost 80 per cent of its boundary with Haryana,” said the dealers in a memorandum submitted to union finance minister Pranab Mukherjee.

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