Dealers of petrol and diesel in the satellite city have approached the Navi Mumbai Municipal Corporation (NMMC), requesting the removal of additional VAT/surcharge by 1% on petrol and by 3% on diesel in its jurisdiction. The dealers are of the opinion that if the civic body rolls back additional tax, it will prove to be a win-win situation for all since petroleum prices in the satellite city are the highest the country. At present in Navi Mumbai, 24% VAT is levied on petrol and 26% on diesel.
Vivek Shinde, member of petrol and diesel dealers association in Navi Mumbai, said, "HPCL and IOCL have their depots in Navi Mumbai and as such dealers have to bear the surcharge. Of this, 90% is refundable but the remaining 10% goes to NMMC. This component is in addition to the local body tax (LBT) that petroleum dealers have to pay. Not only has this resulted high fuel prices in the city, but people also prefer refuelling their vehicles in Mumbai or in Cidco areas (Kharghar to Panvel)."
He added, "Additional surcharge is being collected from petroleum dealers in Navi Mumbai in return for the flyovers constructed by MSRDC in Vashi, Nerul and Belapur. The government has been collecting this tax since the last 10 years. During a meeting with deputy chief minister Ajit Pawar and senior officials of MSRDC and sales tax, it was proposed that NMMC and Cidco should share their cost in lieu of additional surcharge levied. Accordingly, NMMC will have to pay Rs10 crore to MSRDC for 10 years, while Cidco will have to pay Rs14 crore per year for 10 years. Once this materialises, petrol and diesel costs in Navi Mumbai will come down further. Though Cidco has assured that they are willing to pay Rs14 crore for 10 years, no such assurance has come from NMMC."
Shinde said, "NMMC is collecting around Rs137 crore per year from the 10% additional surcharge. It is in a position to give Rs10 crore to MSRDC and if costs are reduced, our rates will be at par with those in Mumbai and as such we will not lose out on customers. Also, increased business will mean increased taxes for NMMC. We are hoping for a positive outcome from NMMC."
He said, "If NMMC agrees to pay the amount to MSRDC, diesel prices in NMMC area can come down by Rs2.85 per litre and petrol by Rs0.75 per litre." At present petrol prices in the satellite city are Rs83.37 per litre, while diesel is Rs66.07 per litre, after government slashed LBT rates for Navi Mumbai last week.
