The BJP on Thursday hit out at the JD(U) government for withdrawing tax concession on diesel by 2% and proposing to hike surcharge on it in near future.
The BJP on Thursday hit out at the JD(U) government for withdrawing tax concession on diesel by 2% and proposing to hike surcharge on it in near future.
"At a time when the Centre reduced diesel price by Rs 10 per litre over past seven months to provide relief to the people, the state government has taken a contradictory stance and withdrawn tax concession on the fuel by 2%, besides proposing to hike surcharge on it which will escalate transportation and farming costs," former Deputy Chief Minister Sushil Kumar Modi said in a statement.
Questioning the state government's wisdom to withdraw tax concession on diesel by two per cent which will now cost Rs 58.14 per litre against Rs 55.12 earlier, Modi said that with the fuel costing two rupees more than that in Uttar Pradesh, by Rs four in Jharkhand and 80 paise in West Bengal, the transporters will prefer to buy it in other states than Bihar.
The withdrawal of tax concession and proposed increase in fuel surcharge will hit revenues of the state government instead of raising it, the former deputy chief minister said.
The petrol pumps located in the border districts of Bihar will be hit hard by the state government's tax decision on diesel with the transporters likely to fill tanks of their vehicles in other states in view of cheaper costs, Modi, who was the finance minister in the erstwhile Nitish Kumar government for eight years, said.
The senior BJP leader questioned the rationale behind withdrawal of tax concession on diesel and proposal of high surcharge from the present 10% to 20% in near future saying that the decision will affect downtrodden sections and farmers in particular and demanded roll back.
The state government had withdrawn the two per cent tax concession on diesel two days ago to raise additional revenue by Rs 26 crore every month.
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