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Do away with VAT on diesel sales
October, 13th 2011
President of KASSIA Prakash Raikar has requested the State Government to consider waiving Value Added Tax (VAT) on sale of Diesel to captive power DG sets which would help industries deal with load shedding as the price of diesel would come down.
Raikar has also urged the state government to reduce VAT for purchases made by ESCOMS since the current rate of 14.5% was making purchase of material for power generation from state industries prohibitive.
ESCOMs cannot buy from local suppliers as the VAT cost is prohibitive. This move would help state industries prosper, said Raikar.
FKCCI and KSSIA have also stated that power supply to the industries must be given the same priority as agriculture.
 
 
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