Our Bureau

Mumbai, Nov. 22

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The State wide three-day-old petrol pumps strike by the Federation of All Maharashtra Petrol Dealers Association was called off on Wednesday evening, following an assurance by the State Finance Minster, Mr Jayant Patil, that sales tax would be reduced on motor fuels.

The proposal for reduction of sales tax would be placed before the State Cabinet on Friday.

The petrol pump dealers had gone on strike seeking reduction in sales tax, especially on diesel.

The federation claims that sales tax on diesel in Maharashtra is the highest in the country at 34 per cent, while that in neighbouring States such as Goa, Andhra Pradesh, Gujarat, Madhya Pradesh and Karnataka ranged from 21 per cent to 27 per cent.

Amicable Decision

After meeting with the federation members, Mr Jayant Patil told presspersons that he would place before the Cabinet the likely impact on the revenues after the reduction in sales tax.

The Cabinet will take the final decision in the matter, he said. Mr Ashok Dixit of the Federation hoped that the State Government would take an amicable decision in the matter.

"We expect the Government to bring down the sales tax to at least 20 per cent," he said.

(This article was published in the Business Line print edition dated November 23, 2006)
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