4 Northern states and 2 UTs agree to fix uniform tax rates on petroleum products
Northern states of Punjab, Haryana, Uttar Pradesh, Himachal Pradesh and Union Territories of Delhi and Chandigarh have agreed to fix uniform tax rates on petroleum products, amid rising fuel prices. Besides, these states and UTs also have agreed to bring uniformity in taxes on liquor and registration of vehicles and transport permit. This decision will lead to increase in government revenue and at the same time curb black marketing. It will also help to curb diversion of trade.
Decision in this regard was taken at meeting finance ministers of five states and officials of UT Chandigarh held in Chandigarh to deliberate on fixing uniform rate of taxes on petrol and diesel. The meeting was initiative of Haryana Finance and Excise and Taxation Minister Captain Abhimanyu.
In this meeting it was decided to bring uniformity in VAT rates on petrol and diesel in order to provide relief to consumers. It was also decided to have uniform policy for state transport so that there should be no loss of revenue from registration and permit fees because of different tax rates.
The participating states also decided to constitute a sub-committee, which would give their recommendation with regard to uniformity in tax rates in next fifteen days. Committee of officials has also been set up for excise and transport, which will send report to their respective state governments on the uniformity of rates.
Categories: Economy & Banking Current Affairs