Goa Chief Minister Laxmikant Parsekar today hinted at increasing Value Added Tax (VAT) on petrol in the upcoming budget session of the State Legislative Assembly.
"...I cannot say anything about it before the budget is tabled. But I feel people of Goa will readily accept additional VAT on petrol prices," Parsekar told PTI in an interview on the occasion of completion of BJP government's four years in office, tomorrow.
Budget will be tabled in the assembly on March 16.
"People will not feel the pinch ifVAT is hiked as petrol prices are already down," he said.
The BJP government was sworn in on March 9, 2012, after the party got majority in the Assembly polls and was led by former chief minister Manohar Parrikar.
Parsekar took over charge of the office in November, 2014, after Parrikar was elevated to the Union cabinet.
Fulfilling electoral promise, Parrikar had abolished VAT on petrol, resulting in a roll down in price by Rs 11 per litre.
"VAT on petrol was abolished during 2012 whenthe prices had reached Rs 73-74 per litre. After completely nullifying the VAT we realised petrol became cheaper than diesel, which was not healthy for economy. We then gradually in phases imposed VAT which is currently 15 per cent," Parsekar said.
He said when VAT was imposed no one objected to it and that people are wise enough to realise that the government is spending the money on social welfare and developmental schemes.
