Himachal pump owners seek tax cut on diesel

June 8th, 2008 - 9:30 pm ICT by IANS  

Shimla, June 8 (IANS) Petrol pump owners in Himachal Pradesh are up in arms against the state government for refusing to slash sales tax on diesel even after the neighbouring states Punjab and Haryana did so to ease the burden of consumers.
The diesel price is the highest in Himachal Pradesh among the three states.

Chief Minister Prem Kumar Dhumal recently said that, unlike the neighbouring states, his government would not reduce the sales tax on petroleum products.

He clarified that the state government is already charging six percent less sales tax than other states.

The business in petrol pumps located in the border area has gone down drastically since the fuel is cheaper in Punjab and Haryana, Himachal Pradesh Petrol Pump Association president Sukumar Singh told IANS Sunday.

“We will meet the chief minister to apprise him of the losses we have been facing after the difference in diesel prices in Punjab, Haryana and Himachal,” he said.

While sales tax on diesel in Himachal Pradesh is 14 percent, in Haryana and Punjab it is 8.8 percent.

The rate of diesel in Haryana and Punjab is Rs.33.60 per litre and Rs.33.62 respectively, while in Himachal it is Rs.35.25 per litre.

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