Petrol prices set to rise in goa with increase in va

Petrol prices set to rise in Goa with increase in VA

Petrol prices in Goa are set to soar as Chief Minister Manohar Parrikar on Friday announced a 15 per cent hike in Value Added Tax (VAT) on the fuel.

Goa government had kept petrol prices below Rs 60 per litre during last five years by reducing the VAT on it.

"My government since last five years has been able to maintain the promise given to the people of the state in 2012, and has ensured that the prices of Motor Spirit (petrol) did not cross the threshold level of Rs 60 per litre," Parrikar said presenting the State Budget today.

"The prices of petrol in Goa are significantly lower compared to the neighbouring states of Karnataka and Maharashtra, where this fuel is sold at Rs 72 and Rs 76 respectively," he said.

"It is time to review this measure, in view of the enhanced spending and provisions made for various existing and new initiatives in the Budget. I propose to enhance the rate of VAT on Motor Spirit to 15 per cent. Even with this increase the price of petrol will be in the range of Rs 65 per litre, which is substantially lesser than our neighbouring states," the CM added.

Parrikar also announced that entry tax imposed on the vehicles entering the state would be abolished once GST is introduced.

"Department of Commercial Taxes is fully geared to migrate over to the GST regime. With the enactment of the State GST Act which I will bring before this House shortly, the state will be set to implement GST from the expected date," he said.

"Goa being more of a consuming state, wherein services play a major role in the state economy, it is anticipated that the state will gain. Any shortfall will be compensated by the Union government," he added.

"Since GST roll out is imminent, I have not tinkered with the rates of various Commercial taxes. However, I propose to withdraw the scheme of collection of entry fee at the border points when GST is implemented," Parrikar announced. (READ MORE)

ARTICLE SOURCE – BUSINESS STANDARD