Haryana's VAT hike puts petrol pump dealers on strike

Saturday 25th July 2015 07:22 EDT
 

Gurgaon: Petrol pump dealers in Gurgaon have decided to go on an indefinite strike, as resolved by the All Haryana Petrol Pump Dealers Association, in protest against the recent VAT hike implemented on diesel.

The protest had started earlier, when the dealers stopped selling fuel on credit to the government. Now, they will also refuse to take delivery of petroleum products from oil companies, the association said. 123 petrol pumps in from Gurgaon, and 2310 pumps across the state will participate in the strike. “Our strike is definitely on. The hike in VAT is unjust and will hit us hard because the rate in Haryana will be higher than other states. We had been assured by the state gover nment that the prices would be less or similar,” Dinesh Goyal, president of All Haryana Petrol Pump Dealers Association said.

In the last seven months, the Haryana government increased VAT on diesel from 8.8% to 16.4%. The government also charges 5% surcharge per litre on diesel, and another 1.5% entry tax on crude oil for every litre. These changes have taken the cumulative tax rate to 17.22%. The dealers have pointed that the BJP government doubled the VAT despite promises of a minor hike. The association has demanded oil tankers in Haryana be allowed to run for a period of 15 years instead of the present 10 years.


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