Punjab abolishes octroi on petrol, diesel

Chandigarh:The Punjab government Monday announced its decision to abolish octroi on petrol and diesel in the state. This will lower prices of the fuel by up to Rs.2.

A state government spokesman said that the decision was taken in a meeting of the Punjab cabinet, headed by Chief Minister Parkash Singh Badal, here.

The abolition of octroi will reduce prices of petrol and diesel by Rs.1-2 per litre, officials said here.

The spokesman said that the state government had already abolished octroi on all items except electricity, petrol and diesel with effect from Sep 1, 2006.

“However, the levy of octroi on petrol and diesel is adversely affecting the sale of these products in urban areas of the state, which are adjacent to other states, because the rate of these products in the neighbouring states is much less. Therefore there is a need to abolish octroi on petrol and diesel which is currently charged at the rate of 1 percent and 2 percent on diesel,” he pointed out.

He said that amendments would be made to the Punjab Municipal Act to allow octroi abolition.

“The state government would compensate the local government department by enhancing the share of local bodies in the VAT from existing 10 percent to 11 percent which would offset the revenue loss following the abolition of octroi,” the spokesman added.

The opinions, beliefs and viewpoints expressed by authors, news service providers on this page do not necessarily reflect the opinions, beliefs and viewpoints of Hill Post. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual. Hill Post makes no representations as to the accuracy or completeness of any information on this site page.

Tags from the story
, ,
Leave a comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.