Punjab's fuel pump owners today asked the state government to bring uniformity in fuel tax rates with adjoining states at the earliest, saying "massive smuggling" of petrol and diesel has hit their trade hard.
The state could earn additional revenue of Rs 600 crore if uniformity in tax rates with that of neighbouring states is realized, they said under the banner of Punjab Petroleum Dealers Association.
"Punjab's revenue from fuel can jump by about Rs 600 crore if uniform tax structure is put in place adjoining states," Punjab Petroleum Dealers Association Executive Member Ashwinder Mongia said here.
At present, Punjab levies maximum taxes on petrol and diesel as against taxes prevailing in Chandigarh, Haryana and Himachal Pradesh.
Taxes on petrol and diesel in Punjab are 35.5 per cent and 14.76 per cent, respectively.
Chandigarh levies 20 per cent VAT on petrol and 9.68 per cent on diesel, while Haryana charges 25 per cent on petrol and 12.06 per cent on diesel. HP imposes 27 per cent on petrol and 11.68 per cent on diesel, he said.
"Because of huge variation in tax rates on fuel vis-a-vis with neighbouring states, rampant smuggling of petrol and diesel is taking place," he claimed.
Singh said that the consumption of petrol in UT Chandigarh was almost equal to four adjoining districts of Punjab-Ropar, Fatehgarh Sahib, Mohali and Patiala.
Petroleum dealers further pointed out that growth of petrol sale in Punjab was 54 per cent in last 10 years against 249 per cent in Haryana.
Advisory Committee constituted by the state government held discussion with representatives of petroleum dealers to address their issues.
Dealers have been told that northern states--New Delhi, Punjab, Haryana, Himachal Pradesh and UT Chandigarh has agreed to rationalize present tax regime and a coordination committee has been constituted comprising taxation secretaries of these states.
