The Auto Parts Manufacturers' Association on Wednesday demanded that Value Added Tax (VAT) on diesel that was increased recently should be decreased so that the cost of other essential commodities could come down.
"During the United Progressive Alliance (UPA) government in the centre, prices of petrol and diesel never remained stable and increased continuously. Now, during the BJP led NDA government prices are decreasing rapidly bringing relief to farmers, industry and individual," said Ranjodh Singh, general secretary of the association.
He said with the decrease in diesel price, the state government should also reduce VAT on it. "In spite of giving any relief, the state government has raised VAT on diesel by 1.5 per cent. The VAT has been raised from 9.75 per cent to 11.25 per cent," said Ranjodh.
Gurpargat Singh Kahlon, president of the association, said increase of VAT on diesel was an anti-industry step taken by the state government. "A 10 per cent surcharge has also been imposed on diesel and with it the price has increased significantly. On the other hand, the union territory of Chandigarh has reduced VAT on diesel from 12.5% to 9.68%," said Kahlon.
He said the industry was passing through a tough phase and it was required that the government should provide some relief to the already starved industry. The association has appealed to the state government to immediately decrease VAT on diesel.