Amid buzz over VAT relief on fuel, UP government may have to assess financial situation

The Uttar Pradesh (UP) government would have to weigh its options and evaluate the prevailing financial situation if it considers reviewing the rate of value added tax (VAT) on petrol and diesel in order to give any such relief in fuel prices to consumers before the 2022 assembly elections, experts have said.

Although chief minister Yogi Adityanath, who presided over a high-level meeting to discuss the rate of VAT in the backdrop of the consistent increase in prices of petrol and diesel on Thursday, did not give any specific directives on the issue, his move to discuss the same has triggered a debate.

“Yes, chief minister Yogi Adityanath convened a meeting to discuss the issue on Thursday. He has, however, not given any instructions in this regard after the meeting,” said a senior officer aware of the discussions there.