Allow VAT credit on petroleum products or reduce the rates: ASSOCHAM to Delhi CM
Updated: Jul 07, 2015 04:45:46pm
New Delhi, Jul 7 (KNN) Industry body ASSOCHAM asked the Delhi Chief Minister Arvind Kejriwal to allow value added tax (VAT) credit on petroleum products or reduce the rates.
In a letter, the chamber wrote “The legislative move by the Delhi Government to increase the Value Added Tax (VAT) on petroleum products to 30 percent from 20 percent will hit the industrial units in the national capital raising the cost of diesel at least by Rs 5 a litre and making the operations unviable.”
The increase in VAT rate on petroleum products will increase the cost of diesel by Rs 5 per litre which is used by most of the industries in Delhi to run their boilers and generators for manufacturing use. There is no other fuel being allowed by Delhi Pollution Control Committee, whereas other states are using alternative fuel like coal and bio briquettes which is much cheaper than diesel, said ASSOCHAM.
ASSOCHAM Secretary General DS Rawat urged the chief minister that either VAT credit be allowed to the manufacturing sector on fuel used in boiler and generator for production purposes or VAT should not be increased.
He emphasised that there was a time when the subsidy was given by the Government on diesel to control its prices. There was justification at that time of not allowing the VAT credit on these products to the industry as fuel was being supplied at subsidized rates.
Now-a-days the price of diesel and other petroleum products is not controlled by the government and no subsidy is given by the government on petrol and diesel, said ASSOCHAM letter to the CM. (KNN Bureau)
In a letter, the chamber wrote “The legislative move by the Delhi Government to increase the Value Added Tax (VAT) on petroleum products to 30 percent from 20 percent will hit the industrial units in the national capital raising the cost of diesel at least by Rs 5 a litre and making the operations unviable.”
The increase in VAT rate on petroleum products will increase the cost of diesel by Rs 5 per litre which is used by most of the industries in Delhi to run their boilers and generators for manufacturing use. There is no other fuel being allowed by Delhi Pollution Control Committee, whereas other states are using alternative fuel like coal and bio briquettes which is much cheaper than diesel, said ASSOCHAM.
ASSOCHAM Secretary General DS Rawat urged the chief minister that either VAT credit be allowed to the manufacturing sector on fuel used in boiler and generator for production purposes or VAT should not be increased.
He emphasised that there was a time when the subsidy was given by the Government on diesel to control its prices. There was justification at that time of not allowing the VAT credit on these products to the industry as fuel was being supplied at subsidized rates.
Now-a-days the price of diesel and other petroleum products is not controlled by the government and no subsidy is given by the government on petrol and diesel, said ASSOCHAM letter to the CM. (KNN Bureau)
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