Fuel prices likely to be hiked further in ‘cash-strapped’ Jharkhand

› Coal companies owe the state a huge amount in royalties to the tune of Rs 40,000 crore while the Centre owes us over Rs 750 crore in GST share. RAMESHWAR ORAON, Finance and planning minister

RANCHI: The state government is exploring ways to increase revenue earnings by levying additional taxes and increasing value-added tax (VAT) on petrol and diesel.

Finance and planning minister Rameshwar Oraon on Tuesday said things were in pipeline as “cash-strapped” Jharkhand needs money to run the show.

“Coal companies owe the state a huge amount in royalties to the tune of Rs 40,000 crore while the Centre owes us over Rs 750 crore in GST share,” he said.

Without divulging details, Oraon said, “People will start hoarding if I say anything right now.”

However, it was learnt that the state government was contemplating on hiking VAT on petrol and diesel by three per cent .

According to available information, the government keeping the fuel prices close to those in the neighbouring states of Bihar and West Bengal.

The state government on May 12 had increased VAT on diesel and petrol by Rs 2.50 per litre and hopes to generate an additional revenue of Rs 717 crore after the probable increase in valueadded

tax.

At present, the state levies a 22 per cent VAT on petrol and diesel.

Earlier, the Hemant Soren government had rolled back the previous government’s decision of charging Re one in token money during property (valued up to Rs 50 lakh) registration of women, expecting to generate Rs 500 crore in registration fees annually.

The state VAT on India-made foreign liquor (IMFL) was also hiked to 75 per cent from 50 per cent on May 19 besides levying 10 per cent special excise duty on the maximum retail price (MRP), to generate an additional revenue of Rs 400 crore per annum.

Secretary (commercial taxes) Vandana Dadel said, “There were proposals to expand the state revenue and we are examining ways of generating it in addition to what we currently earn.”

Dadel further said that VAT is imposed on petrol and diesel, liquor, electricity duty and professional tax, of which the state earns the most from petrol, diesel and liquor sale.

“The exercise on generating additional revenue is under process and things would come out in the public domain in a few days,” she said.