Uttarakhand govt exempts kerosene from VAT

The Uttarakhand government today announced the exemption of kerosene oil from 4.5 percent value added tax (VAT).

This announcement was made by Chief Minister Ramesh Pokhriyal Nishank, who said his government is taking steps to lessen the sufferings of the people reeling under the pressure of rising inflation.

Nishank also said the government would not to impose tax onrecently-hiked rates of diesel and cooking gas.

After holding a protest march against the recent hike in prices of LPG, kerosene and diesel here, Nishank said that his government’s decision would put a burden of Rs 51 crore on the state exchequer.

“The VAT on kerosene oil was being collected at the rate of 4.5 percent and the tax exemption would cost a loss of Rs 8 crore to the state exchequer. Similarly, VAT on diesel is 21 percent and the state would lose Rs 35 crore by not levying fresh tax on the recently increased amount of Rs 3 per litre. For LPG, however, there is no VAT on gas cylinders in the state but the increased amount of Rs 50 per cylinder would also put a burden of Rs 8 crore on the state in terms of subsidy,” he said.

Stating that the attitude of the centre has always been against Uttarakhand, Nishank alleged that the fuel price hike would only further increase the woes of the people, who are alreadysuffering under the pressure of the rising inflation.

He also compared the rates of essential commodities during the NDA government and the current government at the centre and said the that prices of almost all the commodities have doubled in the past seven years, since the UPA government took over.

Nishank alleged that Congress never wanted to create separate Uttarakhand and when the Congress-led UPA government came to power in 2007, it snatched the concessional economic package (CIP) from Uttarakhand besides lowering its quota for foodgrains, gas and sugar.