BJP to protest against VAT hike on fuel in MP

The BJP told that it will soon launch a protest against the state government's decision to increase the Value Added Tax (VAT) on petrol and diesel by five percent.

Bhopal: The BJP will soon launch a protest against the state government's decision to increase the Value Added Tax (VAT) on petrol and diesel by five percent, a party leader said on Monday.

"This is against the promise made by the ruling Congress before the state elections last year," leader of the Opposition in the assembly Gopal Bhargava told media.

"We will soon announce a statewide agitation against the five percent hike in VAT on petrol and diesel in Madhya Pradesh. We will finalize details of the agitation soon after our state president (Rakesh Singh) returns from his foreign tour," Bhargava said.

He said the Congress had promised to reduce the cost of two fuels in the state by Rs 5, in its manifesto before coming to power in the state last year.

"It was not 'Vachan Patra', but 'Jhoot Patra' (false manifesto). The increased cost of the two fuels is causing a lot of hardships to people," he said.

The petrol pump owners in the state have also opposed the VAT hike, claiming that prices of two fuels in Madhya Pradesh are now highest in the country.

Citing extensive damage caused by heavy rains in MP, the Congress-led state government increased five percent VAT on petrol and diesel from Friday midnight to generate additional revenue. It also hiked the VAT on liquor by five percent.

"We are planning to hold a protest by shutting down the petrol pumps soon," Madhya Pradesh Petrol Pump Owners Association's president Ajay Singh said.

After this increase, the diesel price went up by Rs 3.13 per liter and petrol by Rs 3.24 per liter in Bhopal on Saturday, he said.

On Saturday, the petrol was sold at Rs 81.49 per liter and diesel at Rs 72.78 per liter in the state.

With the government's decision, the VAT on diesel has gone up to 23 percent, in addition to cess of about Rs 2 per liter. Similarly, the VAT on petrol has gone up to 33 percent
in addition to cess of about Rs 3.5 per liter.

"When compared to Rajasthan, there is a difference of about Rs 4.99 per liter in the price of petrol and Rs 1.86 per liter of diesel. In comparison to Maharashtra, the difference is up to Rs 2.5 per liter on the two fuels," Singh claimed.

Meanwhile, a senior government official said as per initial estimates, the state has suffered a loss of Rs 11,900 crore due to excessive rainfall this monsoon.

"The five percent VAT hike will be a temporary measure," he added.