Congress asks Gujarat government to reduce VAT on fuels

Opposition leader in the state assembly and senior Congress leader Shaktisinh Gohil criticised the state government for creating brouhaha over the fuel price hike claiming that the state government should reduce taxes on petrol and diesel to provide relief to people instead of indulging in politically motivated statements.

Gohil pointed out that there was 23% VAT on petrol with an additional tax of two 2% and 21% VAT on diesel with an additional tax of 3%. He said in Gujarat, petrol can be cheaper by Rs14 a liter and diesel by Rs12 if the government reduces its taxes.

Defending the increase in the price, Gohil said that the price of crude oil which was $68 a barrel in the international market is now $110 dollar per barrel and this has resulted in increase in fuel price. He added that it was the NDA regime which had linked prices with international prices.

Giving examples of the measures taken by other states, Gohil said that Congress government in Delhi had provided a subsidy of Rs40 per cylinder to people. States like Haryana and West Bengal have given relief to people by reducing tax. Gujarat should also do the same instead of making hue and cry over the issue.