UP to lower state tax on diesel

Lucknow, Sep 10 (UNI) The UP government is likely to bring down the state tax on diesel from the existing 22 per cent including state development tax of one per cent, to 12 per cent making it somehow rational with the nearby states like Delhi, Haryana, Uttaranchal and Punjab, official sources said.

After the decrease of 10 per cent tax on diesel, the commodity is expected to be cheaper by over Rs 3.50 per litre in the state.

However, there is no proposal to interfere in the present tax structure on petrol (25 per cent), Kerosene( 11 per cent) and LPG (5 per cent).

According to official sources here, Chief Minister Mulayam Singh Yadav had already given his approval for the cut down in the taxes of diesel as it would have wide impact on the rural economy of the state.

The officials are nowdays busy on how to cope up the financial losses estimated to be about Rs 70 crore through this decision and alternative measures are being chalked out to fulfill the gap.

Meanwhile, Uttar Pradesh Petrol pump dealers association president P N Shukla told UNI here that due to irrational tax structure, the sale of diesel in the state has come down by 50 per cent as the rate was less by Rs 3 per litre in the adjoining states of Delhi, Haryana and Uttarnanchal.

''We have apprised the CM about our problem and he has assured to do the needful at the earliest,'' Mr Shukla said.

The Petrol pump owners in the state had called for a day's strike on August 12 last on their seven-point charter of demand including lowering of the tax structure. On August 14, CM had a meeting with a four-member delegation of the Association over the issue.

MORE UNI MB NAB SB BS1330