(PTI)
Petrol pump owners in the national capital on Monday urged Delhi government to reduce VAT on petroleum products, citing lower rates in neighbouring states. The increase in value added tax (VAT) on diesel is resulting in heavy loss of sales at petrol pumps in Delhi and making it unviable to operate them, the Delhi Petrol Dealers Association (DPDA), which has around 400 petrol pump owners as members, said in a statement.
The Delhi government had increased VAT on petrol to 30 per cent from 27 per cent on May 5. For diesel, VAT has been almost doubled to 30 per cent from 16.75 per cent, it said . “This increase in VAT has resulted in price difference of more than Rs 8 per litre in diesel with neighbouring states, which is resulting in heavy loss of sales and more than 200 petrol pumps have become unviable,” DPDA President Anil Bijlani said.
The rate difference of more than Rs 8 per litre is resulting in sales shifting to neighbouring states and smuggling from these states, Nischal Singhania, former president of the Association, said.
