States seek details on fuel pricing

VAT Panel asks Centre for info on revenue gains from the increase in petrol and diesel prices.

The states today sought to hit back at the Centre's demand for a cut in sales tax on petrol and diesel and asked the finance ministry how the basic price of the two products had been determined over the last three years in relation to the movement of international crude prices.

"We have also sought information on the revenue gains of the central government as a result of the increase in petrol and diesel prices. We want to know if the Centre is contemplating any reduction in excise duties on petroleum products," Asim Dasgupta, chairman of the empowered committee of state finance ministers on value-added tax (VAT), said.

Expressing displeasure at the central government's decision to include LPG in its list of declared goods in the Union Budget, Dasgupta said the committee was of the view that no such decision should be taken by the Centre, without adequately consulting with states.

He said revenue collection under VAT had increased from 14 per cent in the first quarter of last year, to 23 per cent in the first two months of the current fiscal.

Dasgupta said the committee noted that there had been an increase in the registration of traders.

Stating that there was a 3 per cent deviation from the uniform floor rates, he said the committee had prepared a provisional list of VAT schedule rates and asked states to correct their deviation within this month.

He added that a decision on uniform VAT rate on food grain would be taken after a month, at the next meeting of the empowered committee.