Reduce VAT on fuel: Transporters to govt

Maharashtra should take a cue from the Karnataka government and reduce the VAT on fuel. BAL SINGH, president, AIMTC

MUMBAI: Upset with the continued rise in fuel prices in the country, the All India Motor Transport Congress (AIMTC), one of the apex bodies of the transporters, has appealed to the state to reduce the Value Added Tax (VAT) on fuel to give some relief to the transporters.

With a 15-paise surge, petrol prices touched ₹89.53 a litre in the city on Monday and is close to touching the ₹90-mark for a litre. Diesel prices touched ₹78.41 a litre after witnessing a 6-paise rise. Petrol prices in more than a dozen cities in the state have crossed the ₹90-mark for a litre. In Mumbai, petrol and diesel prices have gone up by more than ₹2.50 a litre and ₹3.78 a litre since August 31. The existing fuel prices consist of various taxes and cess levied by the Union and the state governments, apart from the dealer commissions and transportation taxes.

While demanding to reduce VAT in the state, the AIMTC said that three states — Rajasthan, West Bengal and Karnataka — had reduced VAT on fuel prices and that the state should follow suit. “This will provide relief to the common man and the transport fraternity,” said Bal Malkit Singh, president of AIMTC.

Maharashtra has high fuel prices owing to a 26% VAT on petrol in Mumbai, Thane and Navi Mumbai, and 25% in the rest of the state, in addition to a surcharge of ₹9 per litre across the state. For diesel, the VAT is 22% in Mumbai, Thane and Navi Mumbai, and 21% in rest of the state, with a surcharge of ₹1 per litre across the state.