Now Uniform Diesel Prices Across Punjab, Haryana, and Delhi
According to a new arrangement between the state governments of Punjab, Haryana, and Delhi, diesel prices will now become uniform in the aforementioned states.
Highlights
According to a new arrangement between the state governments of Punjab, Haryana, Himachal Pradesh and Delhi, diesel prices will now become uniform in the aforementioned states. While the VAT on diesel has been increased to 13.4 per cent in Punjab, Haryana hiked it to 16.4 per cent. After adding local levies like cess and surcharge, the effective rate of tax on diesel in the two states will be 17.29 per cent and 17.22 per cent, respectively.
With this move in effect, the difference in the 4 states will not be more then 4-5 paise per litre.
The government of Himachal Pradesh has also increased VAT on diesel by 16 per cent albeit with the condition that it will be enforced once other states adopt measures essential to this decision.
The move to implement a uniform tax structure (UTS) comes as a measure to eliminate tax evasion and smuggling of goods through state borders. However, fuel pump owners have called attention to the fact that unless Chandigarh raises tax on diesel, the northern states will not be able to amass the complete advantage of the uniform tax regime.
Last Updated on July 17, 2015
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