Lucknow, Nov 9: Uttar Pradesh Petroleum Association (UPPA) has withdrawn its proposed strike after the state government issued order to collect the entry tax on diesel from the oil companies. Association's president B N Shukla told sources on Sunday, Nov 9 that the state Trade Tax Commissioner Anil Sant had sent him the Government Order (GO) in which it has been directed that the entry tax on diesel ranging between Rs 1.81 to Rs 1.90 per litre should be collected from the Oil Companies, effective from Sep 30.
Yesterday the diesel dealers in the state, under the banner of UPPA had threatened to stop business from tomorrow, if the state government did not withdraw entry tax.
The government had imposed the entry tax ranging between Rs 1.81 and Rs 1.90 per litre (depending on the quality of the diesel) with effect from Sepember 30.
The dealers say they cannot afford to pay the tax since it is way beyond their profit margin.
''Our profit on one litre of diesel is only 60 paise and if we pay the increased tax, we will be left with no other option but to stop business,'' Mr Shukla said.
At present, there are nearly 4,000 diesel outlets in the state.
Since the new taxes were imposed, the tax liability of every dealer has touched nearly Rs 3.50 lakhs, he added.