Ranchi: About 1,450 Fuel Stations in Jharkhand will remain closed for 12 hours (from 6am to 6pm) on Tuesday as a sign of protest against the attitude of the government of Hemant Soren not reducing value added tax (VAT) on gasoline and diesel.
The Jharkhand Petroleum Dealer Association (JPDA), a gas station operator that was recognized at Jharkhand, on Thursday announced that the fuel filling station would remain closed.
These stations are the official PSU oil company dealers such as Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited.
JPDA stated closing after the state government did not pay attention to their demands to reduce VAT of 5%, did not delete contributions circulating from the government department and did not regulate biodiesel falsification which did not take place in various districts within three weeks.
In accordance with JPDA, various government departments have not paid 50 crore rs in the cumulative fuel for the fuel they buy for their vehicles from pump scores throughout the state.
In addition to troublesome citizens, a 12-hour strike will also cost the state government around Rs 10.5 Crore in terms of income from VAT on gasoline and diesel.
Most of the refueling stations in Ranchi issued public notifications in their place on Thursday to notify previous customers.
Many stations saw the queue when commuters were pushed late at night.
JPDA has demanded VAT reduction from 22% to 17%, quoting business losses in commercial vehicles and in the industrial sector.
“While gross petroleum sales in Jharkhand are 1.28 lakh kiloliters every month when VAT is revised to 22% from 18% in 2015-16 FY, sales have dropped to 1.16 lakh kiloliters.
On the contrary, other countries have witnessed the increase in In 8% petroleum sales during this period, “JPDA said.
High VAT is eating their business as an industrial unit and heavy vehicle operators meet their fuel needs from neighboring countries such as West Bengal, Bihar and Uttar Pradesh where VAT is lower and cheaper fuel, JPDA has told the Minister of Finance of Rameshwar Oraon at the meeting on December 3 this year.
Oraon has rejected a proposal stating that Jharkhand bound cash will lose Rs 400 Crore every year for every VAT Rupee reduced.