Petroleum dealers in Punjab have criticized the quantum of reduction in Value Added Tax (VAT) on petrol and diesel announced by the Congress government of the state, claiming that it was less than what was announced. Petrol Pump Dealers Association Punjab (PPDAP) said this will lead to lower sales and fuel prices to remain higher than in Himachal Pradesh, Union Territory of Chandigarh and Jammu and Kashmir.
The PPDAP said that “the net reduction in fuel prices by Rs 5 per liter in diesel and Rs 10 in petrol was not as announced by the Punjab government yesterday.”
According to Ashwinder Singh Mongia, chairman of PPDAP VAT advisory committee and president of Mohali District Petroleum Dealers Association, the net reduction in diesel price in Mohali district was Rs 4.33 and that of petrol was Rs 9.05.
Mongia said, “While announcing the reduction in petrol and diesel prices, the government took into account basic and additional VAT, but the net reduction in fuel prices turned out to be less than announced as the government also levied cess, additional cess and infrastructure development charges.” per liter of fuel.”
PPDAP president Paramjit Singh Doaba, who owns a filling station in Kapurthala, said the net reduction in diesel price in his area was Rs 4.21 per liter and that of petrol by Rs 8.86.
“Rauli pa diti ki das rapay atte panj rappaye ghatiya but real zehra ghatiya oh aur rapaye chaiyasi paise atte chaar rapai ikki paise (Government made a lot of noise as it announced reduction in petrol and diesel prices by Rs 10 and Rs 5 per rupee) litre, but in reality the prices have come down by Rs 8.86 and Rs 4.21 respectively),” said Doaba, “what kind of government and officials are there who could not even calculate the exact shortfall”.
Doaba also expressed regret that the disparity in fuel prices puts Punjab at a disadvantage.
“We had demanded that the prices of both diesel and petrol should be reduced by Rs 10 per litre. This would have ensured a level playing field,” he said, adding that the announced reduction would have “severe impact on petroleum trade in Punjab, industry, transporters and farming community.” He said the decision would lead to “decline in VAT collection” due to “decline in sales of liters of diesel”.
He also issued a statement, which stated that “Punjab shares its vast borders with Himachal, Haryana, Jammu and Kashmir, Chandigarh and state and national highways, link roads, village roads between Punjab and neighboring states.” There is a free flow of traffic through this, making it unsafe. Such as smuggling in small oil tankers, sourcing of diesel requirements by industry from neighboring states, easy approach for farmers for sourcing their bulk diesel requirements from across the border. Immoral activities.
Further, he said over phone that while farmers living in border areas would be able to get diesel from across the inter-state border, it would not be viable for farmers living in interior areas of Punjab. Similarly, he said that while large industries which have huge requirement of fuel would get it from outside, it would not be viable for small and medium industries which had comparatively lesser requirements.
“We will hold a meeting soon and decide the next course of action of the association on this issue,” Doaba said.
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