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Patna,(BiharTimes): Following pressure from other states and advice from the Union Finance Minister, Pranab Mukherjee, the Bihar government on Tuesday reduced the sales tax on diesel by just 14 paise per litre. It decided to slash the VAT on diesel by merely 0.36 per cent––from 18.36 per cent to 18 per cent. |
Unlike in West Bengal, where the state government reduced the tax on LPG by Rs 16 no cut has been announced on it. Similarly, there has been no cut in the price of kerosene.
This token reduction, according to Uday Shanker Singh, President of Bihar Motor Transport Federation, is just a drop in the ocean and is going to have no impact on the consumers as the diesel price has been hiked by Rs three recently.
The state cabinet effected this token reduction on the plea that it can not give more concession.
Talking to media after the cabinet meeting, deputy chief minister Sushil Kumar Modi said the government had announced that it will reduce the tax on diesel after the Centre hiked the price of diesel, kerosene and liquefied petroleum gas (LPG).
Following the hike in price of diesel transporters have effected a flat increase of 10 per cent in bus fares and transportation costs of trucks. Modi claimed that the tax rates are at lower levels in Bihar in comparison to several other states. Thus there is no scope to slash VAT on LPG.
Modi, who also holds the finance portfolio, said that the reduction of 0.36 per cent of VAT would lead to a loss of Rs 37 crore to the state exchequer in the current financial year.
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