Goa govt mulls abolishing VAT on petrol
Petrol in Goa may become cheaper by Rs 11 per litre if the Manohar Parrikar-led BJP government abolishes the Value Added Tax (VAT) on petrol when it presents the maiden budget on March 21.india Updated: Mar 19, 2012 11:55 IST
Petrol in Goa may become cheaper by Rs 11 per litre if the Manohar Parrikar-led BJP government abolishes the Value Added Tax (VAT) on petrol when it presents the maiden budget on March 21.
The chief minister has indicated that the budget will recommend zero value added tax (VAT) on petrol which would in effect become cheaper by Rs 11 per litre.
Petrol costs Rs 65 a litre in Panaji.
"Compared to neighbouring Maharashtra, the prices will be cheaper by Rs 16," Parrikar told PTI, adding that BJP in its election manifesto had assured of slashing the rates.
VAT on petrol in the state is levied at 20% and that on diesel, 19%.
The state government officials in the know said that the move would result into an additional annual revenue burden of around Rs 100 crore on the state exchequer.
Parrikar, who also holds finance portfolio, is also expected to announce sops like an allowance of Rs 1,000 per month for housewives, unemployment allowance to educated youth besides measures to stabilise prices of LPG cylinders.
"All the announcements included in the manifesto would incur additional liability of Rs 550 crore. However, we will have additional resource mobilisation to mop up the revenue," he said, refusing to elaborate.
Meanwhile, sources in the government stated that Parrikar might impose additional duty on liquor and also tax iron ore dumps (unused ore) at various mining sites.
The state budget had last year announced a green cess on the dumps but the recommendations never materialised due to pressure from mining lobby.