High VAT on fuel drives vehicles to load at Assam
Source: The Sangai Express
Imphal, August 10 2021:
The State levying high Value Added Tax (VAT) on petroleum products has disrupted the fuel market of Manipur greatly as well as diminished revenue generation.
As per information received from certain fuel outlets and companies, heavy vehicles which are used to procure essential goods from other States play a vital role in the maintenance of the domestic fuel market.
Saying that the fuel price in Manipur is about 5 rupees costlier when compared to Assam and Megahalaya, they added that those who frequent other States have now opted to refuel their vehicles at Assam or Meghalaya considering the amount they can save.
The condition of the petrol market, however, is a little better than that of diesel in Manipur.
Earlier, heavy vehicles such as POL, LPG and trailer trucks filled approximately 500 litres of diesel on average from Manipur for trips to other States, they said and added that now they fill only about 100 litres which is sufficient to reach Assam or Meghalaya.
Claiming that the revenue generation from fuel has reduced considerably due to the hike in VAT, he added that the State can generate more revenue by reducing the tax levied.
In this regard the All Manipur IOCL Retail Outlet Dealers' Association has also submitted a memorandum to the Chief Minister on August 3, he added.