Ludhiana: Punjab cabinet’s decision to levy special infrastructure development (ID) fee of 25 paisa on per litre of diesel and petrol has not gone down well with the businessmen.
According to businessmen the hike may seem very little on the paper, but it is nothing less than a setback for the industry, where direct and indirect consumption of diesel is huge. They are of the view that the government should consider keeping diesel out of the purview of this tax and it may be charged on petrol.
Speaking on the issue, Gurmeet Singh Kular, president of Federation of Industrial and Commercial Organisations (FICO), said, “The current rates of both petrol and diesel are very high these days and during the past they have witnessed a huge surge. With this new surcharge of 25 paisa petrol and diesel will get more dearer for everyone in the state, but the industrialists will be hit the most due to this hike as diesel is like raw material for us. There are several processes in the industry where it is widely used like for heating purposes, power etc. On the other hand, transportation of man and material too will become costly due to this hike and industry will suffer both directly and indirectly. It is our humble request to the state government that diesel should be kept out of the purview of special infrastructure development fee. We have no problem if it is charged on petrol.”
According to Nitin Sharma, executive member of Auto Parts Manufacturers Association, “The decision to levy special infrastructure development fee on petrol and diesel will prove to be big setback for the industry and it will lead to rise in the cost of production of factories in Punjab. We will not only end up with inflated expenses, but we will also face more stiff competition from manufacturers of same products in other states, where the rate of diesel is relatively less than that in Punjab.”
Meanwhile, the rate of petrol in Ludhiana on Wednesday was Rs. 85.86 per litre, while diesel was at Rs 76.57 per litre. As per the office-bearers of the petroleum dealer association, as of now the hike of 25 paisa has not come into effect in the state as the government’s notification regarding the same is yet to be published.