Jharkhand Plans New Fuel Cess to Stop Revenue Loss to Border States

Price Gap of Rs 4 Per Litre Drives Bulk Buyers to Neighboring Areas

Key Points:

• State explores cess revision instead of VAT hike on petrol-diesel
• Cross-border fuel purchases cause significant revenue losses
• Government maintains 22% VAT rate despite Centre’s pressure

RANCHI – Jharkhand’s Commercial Tax Department proposes new cess structure to prevent revenue leakage from cross-border fuel purchases.

The state faces revenue challenges. “Price differences affect state income,” a senior official explained.

Current Scenario

Fuel costs vary across state borders. Prices differ by Rs 3-4 per litre.

Large consumers exploit price gaps. Moreover, traders transport fuel through tankers.

Proposed Solution

Officials plan targeted cess revision. The move aims to equalize interstate fuel prices.

The strategy avoids direct VAT increases. Furthermore, it protects common consumers.

Policy Background

Centre reduced excise duty since 2022. Petrol saw Rs 8 cut, diesel Rs 6.

Jharkhand maintains current VAT rates. Meanwhile, state resists pressure to lower taxes.

The proposal awaits final approval. “This ensures revenue without public burden,” an official stated.