Reduction of VAT on petrol, diesel in Chandigarh to hit Punjab business: Petroleum dealers
Chandigarh, October 17, 2017: Chandigarh Administration has reduced Value Added Tax (VAT) on petrol and Diesel by 5 percent will have an adverse impact on the sales in Mohali, Ropar, Fatehgarh Sahib district which border Chandigarh.
The decision will also result in colossal loss of revenue to Punjab government, observed Ashwinder Mongia, president Mohali District Petroleum Dealers Association.
“We are in the same situation as in November 2014 when the Chandigarh Administration had reduced VAT on Diesel. The difference in prices of Petrol and Diesel in Chandigarh will also lead to unscrupulous activities like smuggling,” said Mongia.
The prices of Petrol and Diesel in Union Territory of Chandigarh will now be cheaper by Rs 8.11 and Rs 2.23 per litre as compared to Punjab.
The petroleum dealers claimed that during the hunger strike by them in May 2016, the senior Congress leaders including Parneet Kaur had promised to reduce VAT on Petrol and Diesel and bring it at par with neighbouring states if voted to power in Punjab.