Association seeks reduction in VAT on petrol, diesel

Tribune News Service

Mohali, March 6

The Petrol Pump Dealers Association Punjab (PPDAP) has lamented the negative impact of the rising prices of petrol and diesel on its business as well as increased burden on farmers, industry and common man in the state.

The PPDAP president, Paramjit Singh Doaba, said, “Petrol and diesel is high-priced in Mohali as compared to cities of the neighbouring states in North India. The reason for petrol and diesel being costly in Punjab is higher state taxes (VAT and cess).”

“Higher VAT in Punjab has stifled the growth. The PPDAP has since 2017 continuously sought parity in VAT with the neighboring states and the UT. Though the present government decreased VAT in 2019, it did not wait for results to come and increased the tax again, which throttled growth in the state,” he added.

“Haryana and Chandigarh have gained at the expense of Punjab by reducing VAT on both the products since 2000. However, petrol and diesel consumption grew in Himachal, which increased VAT collections for the state,” he said.

“As the Finance Minister prepares to present the Budget, we demand a reduction in VAT on petrol and diesel and bring it at par with the neighbouring states and the UT. Such a step is needed for the consumers in Punjab, who have been struggling in the wake of the Covid-19 pandemic. Moreover, tax reduction on fuel will encourage industry, business and transport in the state,” he said.