Petroleum dealers across Maharashtra will resort to bandh on August 11 to press for various demands, including leving local body tax (LBT) at 0.1% on fuel in municipal corporation limits.
"Gold is taxed at 0.1% despite being a luxury item whereas petrol, though it is an essential item, is charged as a luxury commodity. This leads to high fuel prices in Maharashtra compared to neighbouring states.
Policies of the state government are responsible for this," a release quoting office- bearers of the members of Federation of All Maharashtra Petrol Dealers Associations (FAMPEDA) said.
On one hand, the state government says petrol is an essential commodity, while on the other hand it taxes this commodity like a luxury item. This is nothing, but the double standards of the government, the release stated.
The base price of petrol comes to merely Rs35-Rs40 and the remaining amount is collected as taxes that the oil companies have to pay to the state government.
In Navi Mumbai Municipal Corporation (NMMC) area, despite a cut in LBT on fuel, prices of petroleum products continue to be higher than neighouring Kharghar and Panvel areas. According to some dealers, the main reason for high fuel prices in Navi Mumbai area (from Airoli to Belapur) are three kinds of taxes the dealers have to shell out for carrying out business.
A cut in LBT only made a marginal difference to petroleum prices. Dealers are paying LBT, export LBT and additional VAT because of which the rates are higher in the city.
Petroleum dealers have been demanding that export LBT of 0.2%, which is charged to them, should be collected from fuel pumps that actually sell the fuel. Oil companies have their depots in Navi Mumbai and cater to Thane, Raigad and Nashik. This export LBT of 0.2% is paid by Navi Mumbai dealers.
Another dealer said an additional surcharge is being collected from petroleum dealers in return for the flyovers constructed by MSRDC in Vashi, Nerul and Belapur. The government has been collecting this tax since 10 years.
It was proposed that NMMC and Cidco share their costs in lieu of additional surcharge levied. Accordingly, NMMC will have to pay Rs10 crore to MSRDC for 10 years, while Cidco will have to pay Rs14 crore annually for 10 years. Once this materialises, petrol and diesel costs in the city will reduce.
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