Mumbai: Cut VAT on fuel, otherwise transport sector is doomed, say transporters

Transporters have also asked the Centre for an excise duty cut. File pic

Mumbai transporters have shot off an appeal to Chief Minister Uddhav Thackeray regarding the high Value Added Tax (VAT) component on fuel charges in Maharashtra. The tax is higher as compared to other states, leading to sharper spikes in petrol and diesel rates, which, in turn, is killing the lockdown-hit transport industry.

"The lockdown and related stress have already led to huge losses and are having a back-breaking impact on the road transport sector," said Bal Malkit Singh, chairman, core committee and former president of the All-India Motor Transport Congress (AIMTC).

With global crude prices increasing, transporters say a tax cut is the only recourse. File pic

"In Maharashtra, petrol and diesel prices have breached previous records. The state government burdens consumers by charging VAT on petrol at 26 per cent not only on the basic price and transport cost, but also on excise duty. Over and above, Maharashtra charges a cess of Rs 10.12 per litre," he said.

"The rate of diesel and petrol is at an all-time high with petrol at R91.30 and diesel at R81.58 per litre because of the high VAT. The transport sector has been badly hit and therefore we request the government to take some pragmatic decisions in its favour. With global crude oil prices on an upward spiral, a tax cut is the only recourse for people and the road transport sector in particular," Kultaran Singh Atwal, president AIMTC stated in an appeal.

Singh said they had also requested the Centre for an excise duty cut along with the appeal to states.

Rs 10.12
Amount of cess levied per litre of fuel