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Gehlot under pressure to cut petrol VAT
Other than public anger and agitation by Opposition parties, Rajasthan Chief Minister Ashok Gehlot is under pressure from about a dozen of his ministerial colleagues and a large number of party legislators to reduce VAT on petrol.
Compared to Haryana and Delhi, where VAT on petrol is 20 per cent, it is 26 per cent in Rajasthan. Ministers and party legislators want to bring it down to 15 per cent to provide relief to the common man.
After the recent Rs 7.50 per litre hike in petrol prices, more than a dozen MLAs, led by Pratap Singh Khachriawas, on Saturday publicly criticised the increase in petrol price. They asked that if Congress Governments in Kerala and Uttarakhand could reduce VAT on petrol, why not Rajasthan?
The Government is unlikely to heed populist sentiment, at least in the near future. According to official sources, envisaging an increase in petrol prices, the Budget had reduced VAT on petrol to 26 per cent, from 28 per cent. This step has cost the State exchequer about Rs 120 crore.
Officials maintained that Government was already giving a subsidy of Rs 25 on cooking gas cylinder and diesel also. Reduction in petrol VAT and subsidy on gas and diesel together amount to Rs 850 crore.
Nonetheless, party leaders argue that since the Government is earning an additional Rs 5,000 crore from royalty on crude oil from the Barmer oilfields, it can certainly afford to cut VAT on petrol.
Sources says Urban Development Minister Shanti Dhariwal, Industries Minister Rajender Parikh, Minister of State (MoS) for Health Rajkumar Sharma, MoS for Khadi & Village Industries Babu Lal Nagar, MoS for Sports Mangi Lal Grasia, among others.
MoS for Child Development Manju Devi, MoS for Education Nasim Akhtar and Parliamentary Secretary Giriraj Singh Malinga have pointed out that the popularity of Gehlot’s Government would suffer a serious dent.
Other than public anger and agitation by Opposition parties, Rajasthan Chief Minister Ashok Gehlot is under pressure from about a dozen of his ministerial colleagues and a large number of party legislators to reduce VAT on petrol.
Compared to Haryana and Delhi, where VAT on petrol is 20 per cent, it is 26 per cent in Rajasthan. Ministers and party legislators want to bring it down to 15 per cent to provide relief to the common man.
After the recent Rs 7.50 per litre hike in petrol prices, more than a dozen MLAs, led by Pratap Singh Khachriawas, on Saturday publicly criticised the increase in petrol price. They asked that if Congress Governments in Kerala and Uttarakhand could reduce VAT on petrol, why not Rajasthan?
The Government is unlikely to heed populist sentiment, at least in the near future. According to official sources, envisaging an increase in petrol prices, the Budget had reduced VAT on petrol to 26 per cent, from 28 per cent. This step has cost the State exchequer about Rs 120 crore.
Officials maintained that Government was already giving a subsidy of Rs 25 on cooking gas cylinder and diesel also. Reduction in petrol VAT and subsidy on gas and diesel together amount to Rs 850 crore.
Nonetheless, party leaders argue that since the Government is earning an additional Rs 5,000 crore from royalty on crude oil from the Barmer oilfields, it can certainly afford to cut VAT on petrol.
Sources says Urban Development Minister Shanti Dhariwal, Industries Minister Rajender Parikh, Minister of State (MoS) for Health Rajkumar Sharma, MoS for Khadi & Village Industries Babu Lal Nagar, MoS for Sports Mangi Lal Grasia, among others.
MoS for Child Development Manju Devi, MoS for Education Nasim Akhtar and Parliamentary Secretary Giriraj Singh Malinga have pointed out that the popularity of Gehlot’s Government would suffer a serious dent.
