Lucknow, Feb 25 : Uttar Pradesh government categorically rejected the demand of the opposition in the state assembly to lower the VAT on petroleum products in view of the rising prices of diesel and petrol in the country.
The opposition including Samajwadi Party and Congress walked off the house in protest against the government’s reply during the question hour.
State industry minister Satish Mahana while replying to the question of SP members said here on Thursday said that due to the strengthening of the health facilities in wake of the Covid-19 and financial resources required for the development works, the state government has no proposal to reduce the VAT on petroleum products.
However, the minister said that the prices of diesel in UP is less than in 14 other states and the rate of petrol in the state is less than 13 other states.
Mr Mahana said that the rate of VAT has not been changed since what the previous Samajwadi Party government had imposed which was 17.48 per cent on Diseal and 28.8 per cent on petrol.
Presently the price of diesel in the state is Rs 80.63 per litre and petrol is around Rs 89 per litre. Mr Mahana also said the state has no control over the prices of LPG cylinders as it is fully controlled by the Central government.
However when the opposition members demanded that why the government was not including petroleum products under GST, the minister did not comment.