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.