(a) whether the Union Government has urged States to cut/reduce State
levies on fuel; and
(b) if so, the details thereof and action taken so far by each State in this
regard, especially Haryana?
(a) whether the Union Government has urged States to cut/reduce State
levies on fuel; and
(b) if so, the details thereof and action taken so far by each State in this
regard, especially Haryana?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)
(a) & (b): Yes, Madam. A letter was written by the Union Finance Minister
to the Chief Ministers of all the States on 26th June, 2011 requesting them to
consider reducing State levies likes sales tax/VAT on Diesel, Kerosene and
Domestic LPG in line with the duty cuts undertaken by the Central Government,
so as to provide some relief to the common man. It was an advisory and States
were not requested to report back action taken. The response of the States and
changes made in tax rate on these items are therefore not available with the
Central Government, except that of Haryana. Government of Haryana, after receipt
of Union Finance Minister`s letter, has exempted levy of tax on sale of Kerosene
Oil sold through the Public Distribution System with effect from 19th July, 2011.