Rajasthan VAT on petrol and diesel highest in country
People in Rajasthan pay 38 per cent VAT on petrol and 28 per cent on diesel which is highest in the country, while the fuels attract road development cess of Rs 1,500 and Rs 17 per kilo litre, respectively
Jaipur: It’s just not electricity rates in Rajasthan that are highest in the country. Comparative VAT (Value Added Tax) rates across states in the country show that people in the state cough up the highest VAT on petrol and diesel.
People in Rajasthan pay 38 per cent VAT on petrol and 28 per cent on diesel which is highest in the country, while the fuels attract road development cess of Rs 1,500 and Rs 17 per kilo litre, respectively.
The resentment of the people is palpable. They said they are paying for the government’s populist policies. Even though the crude oil prices are low, there is no benefit for them, many said. “Cost of living has gone up significantly because of the government’s wrong policies. I have to cut back on travelling even if it means facing hardships and inconvenience every day. This is a problem people face because petrol and diesel are a daily need,” said Ashish Tiwari, employee of a telecom company.
It’s not only the common man who is facing hardship. Businesses are also suffering because of the high diesel prices. Goods carriers plying through Rajasthan are not buying diesel from the state as the rates are much higher compared to neighbouring states.
“Why should transporters buy fuel in Rajasthan and pay higher prices when they can fill the tanks in neighbouring states with much cheaper rates. Moreover, businesses which use diesel are skipping Rajasthan,” said Sunit Bagai, president of the Rajasthan Petrol Diesel Association (RPDA).
In fact, diesel sale in the month of June this year has fallen to 530.41 crore litre from 598.40 crore litre. Similarly, the road development cess has also decreased from Rs 128 crore in 2019 to Rs 116 crore in June this year.
Tiwari said that the government has given two farm loan waivers and nobody knows if those waivers have helped farmers. “What is real is not the improvement in the condition of the farmers but the rise in suffering of the common people as everything has become dearer because of rise in fuel prices,” added Tiwari.
The government has been increasing taxes like mandi levies, excise duties on liquor and power rates continuously to fill its depleted coffers, caused by its mismanagement of the finances, many said.