UP petrol pump dealers threaten another strike

Vishal Sharma
New Delhi/ Agra. Despite the assurances of Uttar Pradesh Chief Secretary Naveen Chandra Bajpei to petrol pump owners in the state over reduction of trade tax on petrol and diesel, UP Chief Minister Mulayam Singh Yadav has ruled out any possibility of cutting down the trade tax to the levels demanded by the pump owners. He said the move would cause unnecessary burden on the state’s exchequer.

Angered by the chief minister’s policy, the petrol dealers have threatened yet another strike if the minister did not change hid stand.

Talking to the mediapersons in Agra on Wednesday, Yadav said if the trade tax on petrol and diesel was reduced, it would cause a serious slump in UP’s economy which shall lose a revenue of about Rs 1,000 crore and the development of the state would suffer greatly.

He said the state government was not considering any reduction of tax rates in the near future and the pump owners should desist from taking such drastic steps like indefinite strikes as such strikes only created a nuisance by choking up the state’s transportation system.

Notably, the UP Petroleum Traders Association (UPPTA) was demanding reduction in sales tax on diesel and petrol to 11 per cent and 20 per cent, respectively, to boost fuel sales.

This is because duties in Delhi was lower and the petrol pumps located on the highways have been steadily losing business to the pumps located on the borders of the nearby states, which have a lower tax rate and sell petrol and diesel at Rs 2-3 lower rates.

The pump owners’ call for an indefinite strike of nearly 4,000 retail outlets of petrol and diesel ended recently following assurances from the UP chief secretary that the government would look into the matter favourably.

Agra Petrol Pump Dealers Association General Secretary Gurbachan Singh said this was an open deceit by Singh because the UP government had made a clear assurance in front of the media that the tax rates would be revised.

The UPPTA will be holding a meeting soon to take necessary action.

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