Pradhan blames State VAT for diesel price hike

BHUBANESWAR:  As political slugfest over rising prices of diesel continues, Union Minister for Petroleum and Natural Gas Dharmendra Pradhan on Tuesday requested the State Government to revisit the tax structure to bring down the fuel price.The price of diesel, which is still costlier than petrol, will come down if the State Government reduces value added tax (VAT) on the fuel, Pradhan told reporters. Accusing Finance Minister Sashi Bhusan Behera of misleading the people by presenting wrong facts, the Union Minister said the base price of petrol and diesel is same for all States. 

“The base price of the fuel is determined on the basis of international crude oil price. Odisha is not the only State where diesel is costlier when the base price of the fuel is same as in many other States including Chhattisgarh, Andhra Pradesh, West Bengal and Jharkhand,” he said. Noting that around 20 States have reduced VAT, Pradhan said the price of diesel is less than petrol in those States due to lower taxes and added that the Finance Minister is trying to mislead the people.

The Union Minister was responding to Behera who blamed the wrong policies of  the Centre for rising prices of diesel. The Union Minister, who has been requesting the State Government to reduce VAT on petrol and diesel, said it is upto the State to take a call as imposition of tax on fuel is a State matter. He said the Centre has already reduced Central tax on the fuel twice to provide relief to consumers.

The Odisha Government must follow other states by reducing VAT to provide further relief to the people. He said the State Government had collected `3,000 crore tax on petroleum products sold in the State in 2014-15 and it went up to `7,000 crore in 2017-18.