Jharkhand: State hikes fuel prices to make up for lockdown losses
The 11-member ministerial council, which met at Project Building on Wednesday evening, approved a revision in VAT on petrol and diesel. The proposal mandated a raise in VAT on a liter of diesel by Rs 0.83 and by Rs 2 increase per liter on petrol
Ranchi: The state cabinet on Wednesday gave its approval to proposals aimed at revising the value added tax (VAT) on petroleum products and Goods and Services Tax (GST) on professions and trade to shore up revenue. The reforms come at a time when Jharkhand’s tax collection has fallen by nearly 80 per cent since April due to the ongoing lockdown.
The 11-member ministerial council, which met at Project Building on Wednesday evening, approved a revision in VAT on petrol and diesel. The proposal mandated a raise in VAT on a liter of diesel by Rs 0.83 and by Rs 2 increase per liter on petrol.
Briefing journalists after the meeting, cabinet secretary Ajoy Kumar Singh said diesel will now cost Rs 66.83 a liter while petrol will be priced at Rs 73.24. The cabinet also okayed a proposal to raise VAT in aviation turbine fuel to by 16 per cent. The increase will bring an additional Rs 35 crore to the state coffers.
In another decision, the cabinet approved the implementation of the Jharkhand Tax on Professions, Trade, Callings and Employments with retrospective effect from 2017. Under the tax regime, professionals, traders and organizations with annual income between Rs 5lakh and 10 lakh will have to pay Rs 1,000 a year. Those with incomes in between Rs 10 lakh and 25 lakh will pay Rs 1,500 a year. Those with incomes between Rs 25 lakh and 40 lakh will have to pay Rs 2,000 annually while those with income above Rs 40 lakh will pay Rs 2,500, Singh added.
The cabinet also gave its post-facto approval to scrapping the Rs 1 property registration scheme for women, which was introduced by the erstwhile Raghubar Das government. It also gave its nod for formulating a new regulation for collecting stamp duty through net banking, debit, credit cards and other payment platforms.
The cabinet also approved the promulgation of the Jharkhand Mineral Bearing Land (Covid-19 Pandemic) Cess Ordinance 2020. “As per the ordinance, a cess of Rs 10 will be levied on every metric ton of coal dispatched. Likewise, cess on iron ore will be Rs 5 per metric ton. Cess on bauxite will be Rs 20 (per metric ton), Rs 10 on limestone and Rs 5 on manganese,” Singh said.
The cabinet also gave its nod to a proposal to the formation of new state disaster management authority regulations and granted post-facto approval to withdrawal of Rs 20 crore from the state contingency fund to bear for the expenses of bringing back stranded migrants, students and tourists.
