DPDA requests state government to reduce Value-Added Tax
March, 14th 2011
The Delhi Petrol Dealers Association (DPDA) has requested the state government to reduce Value-Added Tax (VAT) on diesel to 9 per cent from 12.5 per cent at present, in line with the neighbouring state of Haryana.
"400 petrol dealers of Delhi are seeking parity in VAT with Haryana in the coming Delhi Budget for the year 2011-12 so that smuggling of diesel can be checked," DPDA Vice-President Nishit Goel said in a statement.
The Delhi government, led by Chief Minister Shiela Dixit , is scheduled to table the Budget in the Assembly on March 22.
Due to the Rs 1.25 differential between the price of diesel in Delhi and Haryana, most transporters and taxi fleet owners prefer to buy more polluting Euro 3 Diesel from Haryana pumps rather than the eco-friendly Euro 4 diesel available in the capital, he said.
This has resulted in a heavy revenue loss to the state government, as the Delhi petrol dealers are selling just half the quantity of diesel they used to sell two years ago, despite a surge in demand for diesel throughout India , he said.