Guj Govt has no plan to reduce VAT on petrol, diesel

The Value Added Tax (VAT) on petrol and diesel in Gujarat is lower than many other states and the government is not planning to reduce the levy any further, the state Assembly was informed today.
Replying to a question by Congress MLA Jasa Barad, Finance Minister Nitin Patel said that contrary to allegations made by opposition leaders, people in Gujarat were paying much less for petrol and diesel compared to other states.
Giving details of VAT and retail price of petrol in the neighbouring states, during the question answer session, he said: "VAT on petrol in Gujarat is 23 per cent while it is 26 per cent, 27 per cent and 25 per cent respectively in Rajasthan, Madhya Pradesh and Maharashtra.

"It is clear that VAT in Gujarat is not high and we do not intend to make any change."
He also pointed out that, "in Ahmedabad, price of petrol per litre is Rs 74.31, whereas in Jaipur it is Rs 74.15, in Kolkata Rs 78.34, in Lucknow Rs 76.21, Mumbai Rs 77.66, Pune Rs 77.92 and Patna Rs 75.52."
Patel said that contrary to the allegations levelled by the opposition Congress of charging high VAT from people of state, people in other states were paying more for a litre of petrol than their counterparts in Gujarat.

To a query whether the state has imposed any cess on petrol and diesel, Patel said that government charges 23 per cent and 21 per cent VAT on petrol and diesel respectively with additional 2.5 per cent and 1 per cent cess whereas on PNG (piped natural gas), the VAT is 12.5 per cent and cess is 2.5 per cent.

Later, in his reply on general discussion on state budget, he termed Rs 1,14,450 crore state budget as 'bouquet of flowers'.
"The budget presented by me is like bouquet of flowers where financial provisions are made for each and every section of the society for all round growth and development," he said.
He also pointed out that his government has taken care of social sector of the state as well by making almost double the provision compared to 2011-12.
"In the budget for 2011-12, Rs 21,665 crore were allocated for the social sector whereas in this year's budget we have set aside Rs 40,574 crore for this sector," said Patel.

"Last year per capita income at the national level was Rs 61,564, while in Gujarat it was Rs 89,668. This clearly shows that there is widespread growth and development in the state," he added.