State invokes ESA to combat petrol pumps strike

Mumbai, Sep 18 (UNI) Petrol pumps in Maharashtra launched their strike from midnight last night to press for lowering the sales tax on petrol and diesel, even as the Maharashtra government had invoked the Essential Services Act with effect from September 15.

Petroleum Dealers Association president Ravi Shinde told UNI that out of the 2,400 petrol pumps across the State, 2,200 were on strike and ESA could not be enforced upon the pumps as they had exhausted their stocks and the administration could not force them to get fresh stocks.

Meanwhile, talking to reporters, sales tax commissioner B C Khatau said, ''Maharashtra is not in a position to reduce the sales tax.'' Mr Shinde said the Central Government should come to the aid of the petrol pump owners and reimburse losses to the State Government as in the case of Value Added Tax.

He said on Wednesday, the owners would call upon Union Petroleum Minister Murli Deora on this issue.

Meanwhile, consumer affairs secretary K P Bakshi said that under ESA, district collectors are empowered to take action against erring petrol pump dealers.

''Generally, dealers have stock for two and half days and so the effect of the strike will be clear by tomorrow evening,'' Mr Bakshi added.

Mr Khatau said at present, the sales tax on petrol in Mumbai, Thane and Navi Mumbai is 28 per cent while in the rest of Maharashtra, it was 27 per cent apart from an additional Re one.

Mr Khatau said there was not much difference in the sales tax on petrol in Maharashtra and the other states where it is in force.

In Andhra Pradesh, the sales tax on petrol is 33 per cent while in Tamil Nadu it is 30 per cent.

He admitted that sales tax on diesel was the highest in Maharashtra at 33 per cent in Mumbai, Thane and Navi Mumbai, and 30 per cent across other parts in the State. Sales tax on diesel in Punjab is 8.8 per cent, while it is 12 per cent in Haryana and 12.5 per cent in Delhi. He said that even if the tax is reduced by one per cent, it would cause a loss of Rs 180 crore to the State exchequer.

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