By IANS
Ranchi : The Jharkhand Petroleum Dealers Association (JPDA) is planning to go on strike for the third time in the year to protest the anomalies in Value Added Tax (VAT).
The JPDA will hold a meeting Dec 15 to discuss the issue once more before taking a decision on the matter. The association has been demanding that the government reduce sales tax on diesel from the existing 20 percent to 12 percent.
“Before VAT was implemented in April last year, tax on diesel was only 15 percent. But after VAT came into force, it increased to 20 percent,” said Ashok Kumar Singh, president of the JPDA.
“We will hold a state level meeting Dec 15 to decide the future course of action, perhaps, we will call for a strike. The government had twice assured us to end the tax irregularities but no decision has been taken yet,” he said.
Singh said the business in petroleum products was reduced by 60 percent in the state after the new tax structure was implemented.
The dealers have said neighbouring states like Bihar and West Bengal charge only 12 percent tax on diesel, while Jharkhand charges 20 percent. The truck owners prefer to fill their tanks in the neighbouring states.
“According to an estimate, the government is losing more than Rs.200 million every month, due to the fall in diesel sales. The government is not taking the issue seriously,” said Pankaj Mahto a petroleum dealer.