BJP blames it on high VAT

BHUBANESWAR: AS activists of the ruling BJD hit the streets protesting the fuel price, the BJP on Thursday asked the State Government to reduce value added tax (VAT) on petrol and diesel by 5 per cent to provide cushion to the retail consumers.

Terming the protest of the ruling party as a gimmick to divert attention of the public from BJD’s internal bickering and its failure to address real issues plaguing the State, BJP general secretary Prithiviraj Harichandan said Odisha should follow States like Maharashtra, Madhya Pradesh, Gujarat and Haryana and reduce VAT on petrol and diesel.

After the Centre cut excise duty on petrol and diesel by `2 a litre in October, Union Petroleum and Natural Gas Minister Dharmendra Pradhan had requested all the States to reduce VAT on the two items to further ease the retail price. While the four States responded, the State Government rejected the Centre’s plea on the issue.

Instead of targeting Pradhan, the State Government should urge the Centre to bring petrol and diesel under goods and services tax (GST). The GST should take a call on the issue first.“As a member of the GST Council, it is the duty of Chief Minister Naveen Patnaik to create a consensus among other members for inclusion of the two fuels under GST,” Harichandan said adding, this party is in favour of it.

Earlier, Pradhan had clarified that the Centre can not impose its decision on the GST council which is represented by major political parties and State Governments. Since this is a political decision, all the stake-holders must agree to the proposal, he added.

The State which was charging a VAT of 21.2 pc on petrol and diesel hiked the duty to 26 pc in 2017. The VAT imposed by Odisha on these fossil fuel is more than what neighbouring states like Jharkhand, West Bengal and Chhattisgarh are collecting. The State Government is collecting VAT to the tune of `4,300 crore annually from petroleum products while the Centre is sharing 42 pc of the excise duty to States, he said.