Petroleum Minister Murli Deora on Tuesday renewed his plea to the Maharashtra government to cut sales tax on petrol and diesel to give relief to fuel pump dealers, who were losing high volume business to neighbouring states where tax rates were much lower."I am meeting the Maharashtra chief minister this evening and will reiterate the demand to cut sales tax," he said. Deora said the sales tax rates in Maharashtra are the highest in the country, which put the petrol pump dealers at a disadvantage.
"Chief Minister Vilasrao Deshmukh had promised to reduce them but so far the promise has not been fulfilled."
Sales tax in Maharashtra is higher than neighboring states, leading to loss of business for fuel retailers. Maharashtra imposes 33 per cent sales tax on diesel and 28 per cent on petrol while neighbouring states such as Gujarat levy 23.5 per cent on diesel and 26 per cent on petrol and Goa 21 per cent on diesel and 22 per cent on petrol.
"As a result of high tax rates, truckers prefer refueling their vehicles in Madhya Pradesh or Gujarat... this has made fuel retailing a loss-making business in Maharashtra," Deora said.
Deora, who had last week convinced the Maharashtra petrol pump operators to call-off an indefinite strike, said Maharasthra has to keep its promise of reducing sales tax.
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