Delhi: Petrol dealers’ body calls for cut in VAT

NEW DELHI: Urging the AAP government to reduce value added tax (VAT) on petroleum products, Delhi Petrol Dealers Association (DPDA) on Thursday said the sale of diesel in Delhi had decreased due to higher rate in comparison to the neighbouring states.
In a letter to chief minister Arvind Kejriwal and deputy CM Manish Sisodia, DPDA said that despite easing of lockdown in a graded manner since the first week of May, petrol pumps in Delhi registered 79% less sale of diesel last month, compared with the same period last year. The association said this happened after Delhi government increased VAT on both diesel and petrol to a historic high.
With its revenue collection down to just 10%, Delhi government increased VAT on diesel and petrol to 30% from 16.75% and 27% respectively. This led to an increase of Rs 6-7 per litre in diesel prices in the capital in comparison to the neighbouring states of Haryana, Uttar Pradesh, Punjab and Uttarakhand. Petrol dealers said due to this Delhi lost a big share of diesel sale to the neighbouring states.