Govt to insulate VAT revenue from fluctuating fuel prices

The Cabinet has given its nod to a Bill that will give the government the right to impose VAT on Petrol and Diesel on percentage basis or per litre basis. That will insulate the VAT revenue from fluctuations in price of fuels and ensure fixed revenue. Presently, the tax is imposed on percentage basis. The bill will be presented in the House in the current session of the House.

In some states like Uttar Pradesh, Uttarakhand and Jharkhand, VAT is levied on quantity than rate. If the bill is passed the people would not get much benefit from the decline in prices of Petrol and Diesel.

It was also decided in the cabinet meeting that the Akharas in Simhastha would be given wheat at the rate of Rs 9 per kilogram and rice at the rate of Rs 11 per kilogram. In the meeting, permission to Cooperatives Department for construction of 240 warehouses, where 500 tonnes of wheat could be stored, was also given.

Permission to give free land for establishment of MSME units in Acharpura near the state capital.“Will increase burden on common man”

Deputy Leader of Opposition Bala Bachan has opposed fixed tax on Petrol and Diesel. Bachan alleged that the government is continuously raising the burden on common man. He said Congress party would strongly protest against the bill in the House.

Source: The Free Press Journal