State Government urged to withdraw hike in VAT on petrol, diesel

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Following hike in the price of diesel by Rs. 1.76, State Lorry Owners’ Federation – Tamil Nadu said that a decision on hiking the rent for transporting goods in lorries would be taken during the meeting on March 11 in Chennai.

Addressing reporters, federation president M.R. Kumarasamy said that increase in Value added Tax (VAT) by the State government on petrol from 27% to 34% and diesel from 21.4% to 25% led to sharp increase in price of petrol and diesel to Rs. 74.42 and Rs. 63.05 respectively.

He said that due to poor loading, the industry is facing crisis in the past three years and further hike in diesel leaves us no choice, but to hike the rent.

Mr. Kumarasamy said that hike in rent would lead to increase in cost of essential commodities.

Hence, he urged the State government to reconsider the decision and reduce the VAT.

“The South India Lorry Owners Association meeting will be held in Chennai on March 10, 11 during which important decision will be taken,” he added.

Likewise Tamil Nadu Sand Lorry Owners Federation president Sella Rajamani also condemned the frequent increase in price of diesel. Salem District Lorry Owners’ Association president V. Chennakesavan said that there are 4.25 lakh lorries plying in the State of which 15,000 lorries ply to North India.

“Only 10 days ago, charges for permit, driving license, qualification certificate was hiked. Lorry owners have to bear additional Rs. 4 crore every year due to the hike in diesel price, he added. He said that the price of diesel is less by Rs. 1.70 per litre in the State when compared to Karnataka.

Hence, lorries from Karnataka fill up diesel in Tamil Nadu. But the hike will result in revenue loss to the government, he added.