Uttar Pradesh diesel dealers withdraw sale-suspension threat

November 10th, 2008 - 3:12 pm ICT by IANS  

Lucknow, Nov 10 (IANS) Diesel dealers in the state have withdrawn their decision to stop business from Monday following a government order that the entry tax, imposed recently on the fuel, will be collected from oil companies rather than them.The government imposed an entry tax ranging between Rs.1.81 and Rs.1.90 a litre of diesel, depending on the quality, with effect from Sep 30.

The commercial tax department late Sunday night issued a statement saying dealers would not be taxed after the Uttar Pradesh Petroleum Association (UPPA) asked its members Saturday to stop stocking diesel and threatened to stop business from Monday.

“The commissioner of the department sent the orders to me yesterday apprising us of the government’s decision. So we decided not to stop selling diesel,” UPPA president B.N. Shukla told IANS.

“Our profit on one litre of diesel is only 60 paise and if we have to pay this increased tax, we will be left with no other option but to stop business,” he added.

There are nearly 4,000 diesel outlets in the state. After the new entry tax was imposed, the tax liability for every dealer touched nearly Rs.350,000, forcing them to think of suspending business, Shukla said.

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