Punjab fuel dealers condemn strike call by Haryana dealers

Petroleum dealers of Punjab today described the indefinite strike call by Haryana fuel pump owners as "uncalled for" and "unjustified", accusing them of grabbing diesel business of northern region.
Praising Punjab Deputy Chief Minister Sukhbir Singh Badal for initiating steps to bring uniformity in tax rates on fuel, Punjab Petroleum Dealers Association asserted implementation of uniform tax structure would promote level playing field for fuel outlet owners.
Haryana-based petroleum dealers had yesterday announced to go on indefinite strike from July 20 in protest against non-fulfillment of their demands including lowering of VAT rates than the prevailing in neighbouring states.
They were demanding that tax on diesel in Haryana should be lower by 1-2 per cent as compared to other states, claiming that uniformity in tax on diesel in northern states would hit their business.

"Now, we have uniform rates of diesel in all the northern states and this will go a long way in providing a level playing field and fair opportunity to all the petrol pumps in these states.
"However, the petroleum dealers of Haryana have threatened strike as they are opposing the VAT equalisation. Their demand is uncalled for, unreasonable and unjustified," Punjab Petroleum Dealers Association, Executive member and President of Mohali Petroleum Dealers Association, Ashwinder Mongia said today.

"We strongly condemn their (Haryana dealers) move of going on strike," he said.
Mongia pointed out that difference in tax rates was encouraging illegal pilferage, smuggling of diesel in northern states which was detrimental to the larger interests of the state and the dealers' community.

Punjab dealers claimed that over the past several years, the business of diesel had shifted to Haryana because of higher tax on diesel in Punjab.
"Our demand for VAT equalization was to bring back our own customers who had crossed over to Haryana due to rate difference," he said.
Punjab dealers further pointed out that the present rate of diesel in Haryana was still cheaper than rates prevailing in Uttar Pradesh (Ghaziabad), Rajasthan (Jaipur).
"This clearly shows the greed of Haryana petroleum dealers as they want to grab the total diesel business in the northern states," claimed Mongia.
Punjab, Haryana and UT Chandigarh have raised Value Added Tax (VAT) on diesel.

While SAD-BJP led government hiked VAT on diesel to 13.4 per cent, the neighbouring BJP government in Haryana jacked up the tax to 16.4 per cent on the commodity.
After adding local levies like cess and surcharge, the effective rate of tax on diesel in Punjab and Haryana became 17.29 per cent and 17.22 per cent respectively.
In Chandigarh, tax on diesel has been raised from 9.68 per cent to 16.40 per cent.
The move of raising VAT came in the wake of decision taken by northern states -- New Delhi, Punjab, Haryana, Himachal Pradesh and UT Chandigarh to rationalize present tax regime by implementing a uniform tax structure (UTS) in these states view to eliminate evasion of taxes and curb smuggling of goods through state borders.