Gujarat govt in no mood to cut VAT on petrol, diesel

Minister says Other states paying more for a litre of petrol than their counterparts in Gujarat

The Gujarat government on Thursday indicated that it was not planning to cut value added tax (VAT) on petrol and diesel in the state. Replying to a query raised by Congress MLA from Somnath Jasa Barad in the state assembly, finance minister Nitin Patel stated that as against baseless allegations made by the opposition Congress against this government of charging high VAT from people of state, people in other states were paying more for a liter of petrol than their counterparts in Gujarat.

"There are some people with vested interest who have been propagating that Gujarat has the heights VAT rate in the country," Patel said, pointing the finger a the opposition Congress, without naming the party. "I would like to tell them that there are other state who charge more VAT than Gujarat and people in there are paying more compared to people here," Patel told the house, and name cities where petrol prices are more than that in Gujarat.

He further said that neighbouring states of Rajasthan, Maharashtra and Madhya Pradesh were charging more VAT than Gujarat.

On Barad's question whether the government intended to reduce the VAT on petrol and diesel, Patel said, "It is now clear that we are not charging highest VAT in the country, and we do not intend to make any change." Indicating that the government was not planning to reduce the VAT on petrol and diesel. Gujarat charges 23 per cent and 21 per cent VAT on petrol and diesel respectively with additional tax of 2.5 per cent and 1 per cent cess.  

The state government also charges 12.5 per cent VAT and additional tax of 2.5 per cent on PNG (piped natural gas).

VAT Income (in Rs crore)

Year	Petrol	Diesel	PNG	Kerosene
2011	1,734.34	3,660.13	25.05	2.85
2012	1,913.44	3,952.18	37.24	0.47