JOIN USThe Samajwadi Party (SP) which stated in its election manifesto that it would rationalise VAT rates (value added tax) if voted to power is now in no mood to accept a proposal for the same on petrol price.
The rates of VAT on petrol is the highest in Uttar Pradesh. It is currently 26.55 per cent while the rates in Haryana and Delhi were 21 and 20 per cent respectively. According to experts, if UP reduces VAT on petrol and bought it at par with Delhi, the prices of petrol will come down by Rs 4 per litre. Currently the price for a litre of petrol is Rs 77.77.
According to the officials, the government may find it difficult to reduce its share as it has to fulfill so many promises.
Senior SP leader and minister for urban development Azam Khan said that there was no such proposal (to reduce VAT on petrol). “We have other priorities...it is the duty of the Central government to cut the prices, not ours,” Khan said on Friday.
The state government had repeated said it was committed to fulfill poll promises like giving unemployment allowance, scholarships, free laptops and tablets to Muslim girl students and many more.
State officials said that a proposal has been sent to the government for rationalising the VAT to bring it at par with Delhi but no decision has yet been taken.