On Friday, owners of fuel stations across Rajasthan began an indefinite strike in protest of increased Value Added Tax (VAT) on petrol and diesel. The Rajasthan Petroleum Dealers' Association (RPDA) issued the strike order earlier this week.
The group has stated that Rajasthan has a higher VAT on petrol and diesel than its neighbouring states. Currently, Rajasthan has the highest national rates of VAT on petrol and diesel. Diesel is subject to a 19.3% VAT, whereas petrol is subject to a 31.04% VAT.
Owners of petrol stations in Rajasthan claimed that because customers opt to buy fuel from adjacent states, the high VAT rates have resulted in a decline in revenue.
They also claimed that a lot of people cannot afford fuel because of the hefty VAT. The association also addressed the inconvenience it will bring for the people, stating that it is also their battle because many necessities have become dearer due to the state's high fuel rates.
The organisation had staged a brief symbolic strike on Wednesday and Thursday to get the government to equalise the VAT on petrol and diesel with the rates in Punjab. The RPDA added that prior VAT reductions have always increased sales and tax revenues.
“The executive meeting of the association was held on Thursday evening. In this, the association unanimously decided to hold a statewide indefinite strike from 6 a.m. on September 15,” said the statement from RPDA.
Meanwhile, the state administration has made it clear that it will not concede. On Wednesday, Chief Minister Ashok Gehlot said that the central government is to blame for the increased charges and that they should reduce the costs.
Currently, there are more than 6,700 petrol stations in the state. In Jaipur, the cost of petrol is Rs 108.45 per litre, while the cost of diesel is Rs 93.69 per litre.
The RPDA has issued a warning to the government, stating that if the VAT is not lowered, the strike will continue indefinitely.
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