Delhi, 4 northern states agree to move towards uniform fuel prices; To make panel for suggestions

There is a huge difference in VAT rates on fuel prices in these states and the aim of this meeting was to make sure it does not force customers to cross borders to fill fuels.

The decision was taken in a meeting of Finance ministers and other officials of the northern states held in Chandigarh. (Image: PTI)

Haryana, Punjab, Himachal Pradesh, Uttar Pradesh, Delhi and the Union Territory of Chandigarh on Tuesday collectively agreed to fix uniform tax rate on fuel prices in the adjoining states. The decision was taken in a meeting of Finance ministers and other officials of the northern states held in Chandigarh, reported news agency ANI. The report also states that these states have decided to constitute sub-committee for the same. The decision to keep fuel prices uniform has been taken in the wake of skyrocketing prices of petrol and diesel across the country. These states are ruled by three different parties including the Bharatiya Janata Party (BJP), Congress and the Aam Aadmi Party (AAP). There is a huge difference in VAT rates on fuel prices in these states and the aim of this meeting was to make sure it does not force customers to cross borders to fill fuels. Besides the decision to fix fuel prices, the states have also agreed to bring uniformity in taxes on liquor and registration of vehicles and transport permit, according to an official release. “The participating states also decided to constitute a sub-committee, which would give their recommendation with regard to uniformity in tax rates in next fifteen days,” the official release read further. In the meeting, Delhi finance minister Manish Sisodia proposed that there should be a uniformity in prices of liquor as well in these states to make sure they do not cut into each other’s revenue. Likewise, his Punjab counterpart Manpreet Badal later suggested that even registration fee and permits of transport vehicles should be fixed to avoid intersection of revenue. Haryana finance minister Captain Abhimanyu, who organised the meeting, later concluded the committee would look into all three aspects of the meeting including uniform fuel rates, liquor rates and transport taxes and will decide on the next course of action. Petrol prices in Punjab have touched Rs 88 a litre mark which is Rs 8 higher than in Chandigarh. The state imposes around 36 per cent VAT and surcharges on petrol here.