Capital’s diesel sales drop 79% in May, rise in VAT rate blamed

Automobile fuel dealers in the national Capital have reported a 79 per cent dip in monthly diesel sales during May 2020, compared to May 2019. Despite the lockdown being eased, the drop is attributed a hike in Value Added Tax (VAT) on both diesel and petrol by the Delhi State Government.

According to the Delhi Petrol Dealers Association (DPDA) The decision to increase VAT, although taken with a good intention to increase revenue is proving to be counterproductive as Delhi is losing both sales and revenue.

Anil Bijlani, President DPDA said “we acknowledge the effort of the Delhi Govt. for the measures taken by the Delhi govt. in the fight against the pandemic situation arisen due to corona virus. The government has also taken various measures to implement the unlock to tackle the economic impact caused by the lockdown”.