Delhi Government to immediately reduce VAT
INVC NEWS New Delhi ,Delhi Petrol Dealers Association (DPDA), the apex body of petrol pump owners in capital decision to close all fuel pumps including Compressed Natural Gas (CNG) for 24 hours on October 22 in protest against Delhi government’s refusal to reduce Value Added Tax (VAT) on diesel and petrol will also adversely affect about 10 lakh CNG fitted vehicles in the capital. There are about 400 Petrol pumps in Delhi which also have linked CNG pumps with them both will remain closed in protest from 6.00 AM onwards on October 22 and remain closed till 5.00 AM on October 23, 2018 . October 22 being Monday the first working day after long spell of festival holidays will badly affect private as well as public transport vehicles including school buses, cabs, auto and goods transport mostly running on CNG. "At present most of the petrol pumps in the capital have linked CNG stations dispensing about 35 lakh kg of CNG per day to automobiles in the National Capital Region (NCR) . The closure of CNG stations along with fuel pumps will hit the CNG fitted vehicles" said Mr Nischal Singhania , President, Delhi Petrol Dealers Association (DPDA). “The central government had slashed the rate of petrol and diesel by Rs 2.50 per litre each on September 4. This was followed by reduction of Value Added Tax (VAT) by various states including neighboring Haryana and Uttar Pradesh bringing relief to their residents. But Delhi government refused to reduce VAT on fuel both petrol and diesel resulting in fuel becoming more expensive than bordering Haryana and Uttar Pradesh “said Mr Nischal Singhania , President, Delhi Petrol Dealers Association (DPDA) "DPDA has called for strike as delhi government has refused to reduce VAT resulting in capital having higher VAT than neighboring states. In comparison to Delhi, fuel rates in bordering states like Uttar Pradesh and Haryana are cheaper. . Because of high price in Delhi and low prices in states like UP and Haryana, customers are deserting the petrol pumps in Delhi leading to huge drop in sales” He said. “Due to difference in prices there has been a sharp drop of 50% to 60 % in sale of diesel in Delhi and 25% in petrol in this quarter. OnOctober 22 all the 400 pumps of Delhi will neither purchase nor sell Petrol, Diesel & CNG in protest for reduction of VAT on Petrol & Diesel in Delhi This festival season is peak season for our sale due to social travelling by residents of Delhi .” he added “ Due to the fuel price difference with bordering states residents of Delhi keep buying much polluted Euro IV from fuel from neighboring states instead of cleaner an eco friendly Euro VI provided by Delhi fuel pumps. Environment friendly Euro VI fuel is only available in NCT of Delhi. There is also an apprehension of interstate smuggling of inferior Euro IV fuel in the city. Emissions of Euro VI fuels are 80% less than the emissions of Euro IV fuels. Dealers would be forced to cut cost by reducing working hours due to loss of sales & revenue.”Mr Singania said. "DPDA urges Delhi Government to immediately reduce VAT on Petrol and diesel and encourage commuters to buy Euro VI fuel and save the livelihood of employees & owners of Petrol pumps of Delhi and also save state’s revenue loss.