JOIN USThe State government will take a decision on reducing the sales tax component on petrol next week. It is also waiting for oil marketing companies to decide whether to cut petrol prices following fall in international crude prices.
The steep hike in petrol prices in May fetched State government an additional revenue of Rs 20 crore per month. However, the government had abstained from taking any decision in slashing sales tax stating that the model code of conduct was in force due to the Council polls to teachers’ and graduates’ constituencies. With the results of the Council polls declared, the model code of conduct closed on Friday.
According to official sources, the Commercial Taxes department has been asked to work out details on the reduction in revenue if sales tax is reduced by a few percentage points.
The State has kept auto fuels out of the Value Added Tax (VAT) regime and charges 25 per cent sales tax on petrol. In addition, a five per cent entry tax that is levied on every litre of petrol or diesel coming into the State. The sales tax component is one of the highest among states in the
country.