Team Herald
PANJIM: In a major development, the Chief Minister Laxmikant Parsekar on Tuesday hinted at increasing Value Added Tax (VAT) on the petrol during the upcoming State budget 2016-17 which will be presented on March 16. The petrol prices in Goa are currently at Rs 51 per litre.
“I cannot say anything about it before the budget is tabled. But I feel people of Goa will readily accept additional VAT on the petrol prices in the State,” Parsekar said without disclosing details as how much VAT would be imposed.
“People will not feel the pinches if VAT is hiked as petrol prices are already at its lowest,” the chief minister said.
The BJP-led government as promised in its election manifesto had soon after coming to power had abolished VAT on the petrol reducing its prices by Rs 11 per litre.
However, in 2013 government imposed three per cent VAT on petrol, which was further increased to 10 per cent in December 2014. The VAT on petrol prices is currently 15 per cent as hiked in the State Budget last year.
‘The VAT on petrol was abolished during 2012 when the prices had reached Rs 73-74 per litre. After completely nullifying the VAT we realised that petrol became cheaper to Diesel, which was not healthy for economy. We then gradually, in phases, imposed VAT which is currently 15 per cent,” Parsekar said.
The chief minister stated that when VAT was imposed none of the people objected to it. “People are wise enough to realise that government is spending the money on social welfare and developmental schemes,” he said.
Meanwhile, stating that Government lost revenue of around Rs 5000 crore due to closer of mining industry since September 2012, Chief Minister said that he expects to earn Rs 300-400 crore from the industry during ensuing financial year.
“After BJP government was sworn in the year 2012, the main source of income which was mining had come to standstill resulting in the revenue loss of about Rs 5,000 crores in last four years,” he said.
