VAT on petrol to return, albeit 5%, hints Parsekar

PANAJI: Thirty-three months after his predecessor slashed VAT on petrol making Goa the only state in the country to sell petrol cheaper than diesel, chief minister Laxmikant Parsekar on Wednesday indicated that his government is looking to slap VAT back on petrol, albeit about 5% only.
“VAT on petrol was reduced at a time when petrol prices were rising. It was slashed to give relief to Goans,” recalled Parsekar, speaking on the sidelines of the launch of the senior citizens’ helpline.
Pointing out that petrol prices are currently reducing, he said, “Diesel is derived before petrol and its price should be lower than petrol, yet diesel is priced higher in Goa.”
Saying he thought it is high time the government raised VAT on petrol to about 5% from it’s current 0.1% to make it about one or two rupees higher than diesel, Parsekar explained, “That would be easily acceptable to the public. This would be in the overall interest of the state. It is only in Goa that petrol is cheaper than diesel. If diesel is 53 a litre, petrol can be 55 a litre. There is nothing bad in that.”
The CM further said the revenue earned from petrol sales would go into the government treasury and help the state.
“Mining has stopped from September 2012 and we lost about 25% of the state’s revenue coming from mining. Whatever revenue comes, will help the state,” stressed Parsekar.
Implementing BJP’s assembly election promise, Parrikar, the current Union defence minister, had slashed VAT on petrol from 20% to 0.1% in March 2012, immediately after his government came to power.
The move saw the price of petrol reduce by 11. Petrol in Goa prior to that was about 65.