Fule smuggling into Punjab has shot up in the face of state government’s refusal to cut the Value Added Tax (VAT) on petroleum products. Petrol in the state costs is Rs 10 more than in Chandigarh while diesel costs Rs 4 more. Smuggling operations are focusing on the neighbouring states of Himachal Pradesh, Jammu and Kashmir (J&K) and Haryana. The Punjab government charges 36.85% VAT on petrol and 17.25% on diesel, higher than the neighbouring states.
While Bharatiya Janata Party (BJP)-ruled Maharashtra levies 46.52% VAT on petrol, the highest in the country, Andhra Pradesh comes in second with 38.82%. Dealers in Chandigarh, who did not want to be named, said that the sales of both petrol and diesel have shot up by almost 80%. The combined sale for the period between April-Sept 2018 in the Union Territory (UT) stood at 97,000 kiloliters up from 54,000 kiloliters in the corresponding period last year. Read more