Ranchi, Feb 23 (Inditop.com) Petrol pumps in Jharkhand were closed Tuesday, causing inconvenience to residents, as the dealers called for a one-day strike to protest a 5.5 percent Value Added Tax (VAT) hike on diesel.
The Jharkhand government early this month had hiked VAT on diesel from 14.5 percent to 20 percent, causing rise of diesel prices up to Rs.2 per litre. The move was made to generate additional Rs.150 crore per annum.
Around 650 petrol pumps were closed in Jharkhand Tuesday, causing inconvenience to the people.
“Our agitation will continue till the state government rolls back the hike, following which the sale of diesel has reduced 24 percent in the state.
“Even the state government is suffering revenue loss due to reduction in sale of diesel,” Ashok Kumar Singh, Jharkhand Petroleum Dealers Association (JPDA) president, told reporters.
The JPDA says that in neighbouring states like Bihar, Orissa and West Bengal, VAT on diesel is 18.36, 17 and 18 percent respectively, while in Jharkhand it has been hiked to 20 percent.
