Raipur
Chhattisgarh govt has reduced the tax on diesel by 7%, but this will not benefit the common people. This concession has been given only to benefit the big businessmen of Chhattisgarh. According to the rules, businessmen falling in this category will be able to buy diesel at a lower rate.
The Chhattisgarh Goods and Services Tax, which comes under the state government, has been reduced. The state has reduced the tax from approximately 24% to 17%. A notification has also been issued in this regard by the Commercial Tax Department.
With a 24% tax in the state, diesel currently costs around Rs 93 to 94 per litre. Now, with a 17% tax, the price of diesel will come down by about Rs 6.
According to the notification issued by the Chhattisgarh government, businesses involved in road transport, airports, railways, canals, dams or other irrigation works, pipeline drinking water supply, water treatment, sewerage, construction, bridges, tunnels, terminal construction, mining or transportation of mining factory material will benefit from this.
To avail this benefit, businessmen must have a Category B petroleum product bulk storage license. The businessman will have to purchase at least 12 liters of diesel from Chhattisgarh only. The businessman will be entitled to this discount only on purchasing diesel in bulk from Indian Oil Limited, Bharat Petroleum, Hindustan Petroleum, Nayara Energy and Reliance Industries Limited.
The government had input that about one and a half lakh liters of diesel was being purchased from other states, which was causing a loss of revenue to the state government. Under the new rules, 17% tax will be levied on bulk purchase of diesel, which will stop the purchase of external diesel.
The Chhattisgarh government has reduced the tax on diesel to benefit large businesses. This move is expected to reduce the state’s dependence on diesel imports and increase revenue. However, the common people will not see any benefit from this reduction. To avail this benefit, businesses must meet certain criteria, such as having a specific license and purchasing a minimum quantity of diesel from approved suppliers.
Reduced tax: Chhattisgarh has reduced the tax on diesel from 24% to 17%.
Benefits: Only large businesses involved in specific sectors will benefit.
No benefit for common people: The reduction in diesel prices will not benefit the common consumer.
Criteria for availing benefit: Businesses must meet specific criteria to avail the tax benefit.
Aim: To reduce the state’s dependence on diesel imports and increase revenue.
