Three states cut VAT on fuels

Three states cut VAT on fuels

Maharashtra, Gujarat and Himachal Pradesh on Tuesday reduced valueadded tax (VAT) on petrol and diesel.The move follows the Centre cutting excise duty on petrol and diesel by Rs 2 per litre last week.Petrol in Maharashtra will be cheaper by Rs 2 and diesel by Rs 1 per litre from Wednesday.

Finance Minister Sudhir Mungantiwar said the decision would cause an annual revenue loss of Rs 2,000 crore to the state exchequer but “the government is ready to bear the additional financial burden despite Maharashtra´s economy not being in a good shape.” Gujarat cut VAT on petrol and diesel by 4 per cent. The effective price of petrol in Gujarat will be Rs 67.53alitre and that of diesel Rs 60.77 per litre, Chief Minister Vijay Rupani said. “We have taken this decision in the interest of the people.

The decision should not be considered to have any links with the polls.This is only aimed at giving relief to the people and it is a permanent decision.” The Himachal government reduced VAT on petrol and diesel by 1 per cent, said Chief Minister Virbhadra Singh.

OMCs stand firm against Oct 13 dealer strike

Oil marketing companies (OMCs) have taken a firm stand against the strike planned by dealers on October 13, calling it totally unreasonable.The Petroleum Dealers Federation are protesting the marketing discipline guidelines amended by the OMCs that has made penal action stringent for offences involving short delivery of products, operating automated retail units on manual mode and improper maintenance of toilets.

“There needs to be a reason for their (dealers) demand.We are not going to negotiate on the guidelines given out on October 2,” said Balwinder Singh Canth, director (marketing) at Indian Oil, told reporters at a conference Tuesday.

In the guidelines, dealers have also been directed to pay minimum wages, as notified by the OMCs, and salaries and wages have to be paid through e-payments.However, the changes have not gone down well with the dealers, who are still unhappy with the switch to a daily fuel pricing system from fortnightly.

“Our guidelines are in the interests of the consumer and we will not put public into inconvenience during this festive season,” said Canth, who clarified that about 1,000 company owned company operated outlets of all OMCs would ensure products were available for consumers.Dealers have also demanded goods and services tax on petrol and diesel concerns expressed by dealers towards home delivery of fuel to consumers, OMCs said this was in the interest the consumer.

It would be undertaken after approval of the Petroleum Safety Organisation.OMC officials also said not all dealers were keen on the strike and some have already informed of their nonparticipation.

The Business Standard, New Delhi, 11th October 2017