Mayawati refuses to reduce VAT on diesel

Uttar Pradesh Chief Minister Mayawati today categorically declined to reduce Value Added Tax (VAT) on diesel saying tax rate in UP was already lower compared to several other states.

In her letter to Prime Minister Manmohan Singh, she mentioned that during 2008-09, UP had lowered VAT on diesel from 21 per cent to 17.23 per cent, while VAT on domestic Liquidified Petroleum Gas (LPG) was waived off completely.

The CM said VAT on diesel in UP was lower than rates prevailing in Madhya Pradesh, Maharashtra, Tamil Nadu, Andhra Pradesh, Kerala, Uttarakhand, Gujarat, Bihar, Jharkhand, Rajasthan and Karnataka. There was no headroom for the state to further cut VAT on diesel, her letter stated.

Recently, some states had cut VAT on these commodities to provide succour to their people, while the Centre had also suggested the states to reduce VAT.

Mayawati has vehemently urged the Centre to roll back the latest round of fuel price hike spanning diesel, kerosene and LPG, which witnessed hikes of Rs 3/litre, Rs 2/litre and Rs 50/cylinder respectively.

“The latest hikes have not only burdened common man directly, the resultant increase in transportation cost due to dearer diesel would further push the prices of daily commodities up,” Mayawati lamented.

She observed when crude oil prices were showing downward trend, there was no justification for the empowered group of ministers (EGoM) to finalise price hikes.

Mayawati alleged between 2005-06 and 2010-11, the Congress-led United Progressive Alliance (UPA) had provided incentives estimated at Rs 21,00,000 crore to the corporate world, while the latest hike had been implemented for merely recouping Rs 21,000 crore for the oil marketing companies.

She underlined UP was facing financial hardships, while the Centre had adopted apathetic attitude towards it for financial aid.