BJP demanded that state governmentt reduce VAT on fuel to provide relief to consumers
The Bharatiya Janata Party (BJP) on Friday protested against hike in petrol price by Rs3 per litre, while civic activists demanded that the state government reduce value added tax (VAT) on petrol to provide some relief to consumers.
A group of BJP activists demonstrated near Alka Talkies in the morning to protest against the increase in petrol price. City president, Vikas Mathkari, led the demonstrations. Activists condemned the central government for hiking petrol prices and demanded that the hike be withdrawn immediately.
President of Sajag Nagrik Manch (SNM), Vivek Velankar, in letters to chief minister Prithviraj Chavan and deputy chief minister Ajit Pawar, demanded that the state government reduce VAT on petrol to provide relief to consumers in view of the hike.
He said Maharashtra is one of the few states that is charging more than 25% VAT (sales tax) on petrol and diesel. Currently, Maharashtra is charging 26% VAT on petrol and diesel, in addition to Re1 per litre as state cess on these petroleum
products.
Most other states are charging 20% VAT, he said, adding that in 2008 the state government lowered VAT on petrol and diesel by 2%, from 28% to 26%. Since then, petrol and diesel prices have gone up by 40% and consumption has increased by 20%. Hence, the state government has benefited from the additional revenue in spite of reduction in VAT in the last three years.
He said that with the recent hike by Rs3 per litre, the revenue of the state government would further increase by 1.5%. So, if the state government decides to reduce VAT on petrol and diesel, it would not suffer a major loss in revenue and consumers can get some relief.
He said that in the last two years, ‘Aam Adami’ has been reeling under tremendous pressure of price rise and his life has become miserable. It is need of the hour to give him some relief.
Spokesperson of Shiv Sena, Neelam Gorhe, said on Friday her party activists would take out a cycle rally from Hotel Good Luck in Deccan Gymkhana to the district collectorate on Saturday to protest against hike in petrol price and to oppose the proposal to reduce subsidy of liquefied petroleum gas (LPG). The march would be led by party MLAs Mahadeo Babar and Chandrakant Mokate.
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