Uttar Pradesh minister Siddharth Nath Singh on Tuesday affirmed that government is tax-neutral towards petrol and diesel prices and the recent increase in VAT on these commodities would not drastically affect the oil prices.
"The government is tax-neutral towards petrol and diesel prices. When oil prices increase in the international market, then Value Added Tax (VAT) decreases. When prices in the international market decrease, then VAT increases. This is what the Yogi government did. The Opposition is raising the issue without knowing the crux of the matter," Singh said.
He pointed out the price data comparison between the current and last year's figures and indicated that even though the taxes had been increased, oil prices are Rs 10 below last year's as a result of the tax-neutral policy on these commodities.
"Last year in October 2018, when VAT was decreased then the petrol price was Rs 83.35 per litre and diesel price was Rs 75.64 per litre. Today, when VAT has been increased petrol price is Rs 73.65 per litre and diesel price is Rs 65.35 per litre. So, even today petrol and diesel prices are around Rs 10 below last year's mark. So, there would be no effect on inflation and the common people would not be affected by this move," Singh pointed out.
Disclaimer: No Business Standard Journalist was involved in creation of this content
