The government should bring petrol and diesel under a uniform VAT structure of 8 per cent as the variation in state tax was putting additional burden of taxation, industry body Assocham today said. States sales tax on petrol varies from 33 per cent in Andhra Pradesh to 18.9 per cent in Manipur and on diesel from 34 per cent in Mumbai to 8.3 per cent in Tripura, the chamber said adding that entry tax/octroi is also levied on movements of crude in many states.
“The element of taxation on petrol and diesel is to the extent of about 140 per cent and therefore, at least there should be a uniform VAT of 8 per cent…Diesel and petrol so that oil companies are given some respite from higher crude oil prices internationally and aam adami (common men) is also not subjected to unnecessary burdens,” it said.
The chamber also said that government-owned oil companies should also be encouraged for export of petroleum products like private sector so that firms like Indian Oil Corporation, BPCL, HPCL also avail export duty benefits.
