Chandigarh: In a very necessary pause, Minister Punjab Chararjit Singh Channi on Sunday announced a reduction in Rs 10 and Rs 5 per liter, the price of gasoline and diesel from Sunday midnight.
Now, gasoline will cost Rs 95 per liter and Diesel Rs 83.75 per liter in Punjab.
This step follows the central decision to reduce excise duties, the Punjab government must now bear the overall loss of almost Rs 4,151 Crore per year due to the reduction in customs by the Central Government and Value Added Tax (VAT) by the state government.
The main minister said Punjab now has the lowest level of gasoline in the UT Chandigarh restriction area (Rs 94.21) and the diesel level in the country is also much lower than Haryana neighbors (RS 86.53) and Rajasthan (Rs 100,46).
The Punjab government has reduced VAT on gasoline from 27.27% (an additional cost of 24.79% + 10%) to 15.15% (an additional cost of 13.77% + 10%) and on diesel from 17.57% (additional costs 15.93%) up to 10.91% (9.92%)% + 10% additional costs).
Channi said the central government had cut the price of gasoline and diesel each of Rs 5 and Rs 10 per liter, with the effect of November 4 by reducing customs, which had a negative impact on the income of all countries, including 42% of shares in excise duties Collected by the central government.
Cut PPN will lead to annual losses of RS 3.295 Crorethe annual consumption of gasoline and diesel in Punjab according to the 2019-20 financial number is 13.52,260 kiloliters (KL) and 3.886,897 KL.
Therefore, the reduction of VAT on gasoline and diesel each amounting to Rs 10 and Rs 5, will produce annual losses of RS1,352 Crore and Rs 1,943 Crore on gasoline and diesel.
But this is an additional estimated annual loss than RS 684 Crore and more than RS 172 Crore VAT income for gasoline and diesel, due to the reduction of excise duties by the central government.
He added that the decision had brought parity at the PPN level on gasoline and diesel with neighboring countries and UTS and would provide encouragement to Punjab farmers during the general Rabbi season.
Reducing VAT tariffs on gasoline and diesel will also increase consumption, reduce inflation for poor and medium classes and increase the overall economic cycle.
‘The center of Finance Minister Share’State Grabed State Manpreet Singh Badal said the Punjab government wants to ask the center to reduce the components of tasks in addition to customs for gasoline and diesel.
He added that in the past six years, there was no increase in customs but other components such as additional excise, special excise, additional costs and CESS have increased because when these components increase, the central government is not bound to distribute revenue from these components with America.
“The Modi government has won the country’s share of 6 lakh crore in the past six years,” he added.
Manpreet said that the government of the furniture to maintain people’s welfare, whether gave them good education, health and law and order through the police, retirement of old age or generation of strength, construction and canal maintenance or other social welfare activities.