Dehradun: The state government has fixed the base tax (price) for petrol at 17 per cent while retaining the VAT at 25 per cent and not touching diesel prices. The government has taken this step to arrest the falling revenue due to the downward trend in petroleum prices.
“We have taken corrective measures to make up for the revenue loss the government is suffering due to fluctuating petroleum prices. We have fixed the basic minimum tax for petrol at 17 per cent. VAT on petrol will continue to remain the same and there is no change in the diesel price,” said Chief Secretary Rakesh Sharma while addressing a press conference here today.
The Chief Secretary said, as of now, the price of petrol had been fluctuating, depending on the movement in the international market. “As of now, due to the downward trend, the consumer is benefitted as the Central Government is passing on the benefit to the consumers but the state government is losing revenue. The state government earns 45 per cent revenue through petrol taxes. We had to take corrective measures by fixing base price for the sale of petrol in the state,” he said.
Uttarakhand had adopted the Uttar Pradesh model by fixing the base price for petrol. “While Uttar Pradesh has fixed the base price for petrol at 17 per cent, it has also hiked VAT to 31 per cent. But in our state, the VAT continues to remain at 25 per cent,” Sharma said.
The state government had earned a revenue of Rs 400 crore per month and with the latest corrective measures, it was expected to earn a revenue of Rs 4,300 crore annually.
“We have taken corrective measures to make up for the revenue loss the government is suffering due to fluctuating petroleum prices. We have fixed the basic minimum tax for petrol at 17 per cent. VAT on petrol will continue to remain the same and there is no change in the diesel price,” said Chief Secretary Rakesh Sharma while addressing a press conference here today.
The Chief Secretary said, as of now, the price of petrol had been fluctuating, depending on the movement in the international market. “As of now, due to the downward trend, the consumer is benefitted as the Central Government is passing on the benefit to the consumers but the state government is losing revenue. The state government earns 45 per cent revenue through petrol taxes. We had to take corrective measures by fixing base price for the sale of petrol in the state,” he said.
Uttarakhand had adopted the Uttar Pradesh model by fixing the base price for petrol. “While Uttar Pradesh has fixed the base price for petrol at 17 per cent, it has also hiked VAT to 31 per cent. But in our state, the VAT continues to remain at 25 per cent,” Sharma said.
The state government had earned a revenue of Rs 400 crore per month and with the latest corrective measures, it was expected to earn a revenue of Rs 4,300 crore annually.
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