PANAJI
Transport Minister Mauvin Godinho defended the government’s decision to marginally hike VAT rates sending the already spiralling retail prices of petrol and diesel further north, even as Opposition parties slammed the move.
Godinho said the hike in VAT on petrol and diesel was inevitable as “money had to come from somewhere to fund government schemes and development work.”
Godinho was speaking at a function held to distribute compensation cheques of Rs 2-lakh to families of some two dozen families of accident victims where he also said that the new more stringent Motor Vehicles Act and rules will be enforce only after roads in Goa are repaired.
“It is not ideal to hike fuel prices. But Central govt has given number of schemes to the people. The hike in fuel is necessitated as a consequence of that. Money has to come from somewhere for development, schemes, salaries, pensions etc,” Godinho said.
He claimed that it could be a “temporary” measure and the VAT rates will be lowered once the financial comfort level is reached.
The Finance department had on Thursday issued the notification hiking VAT on petrol by two percentage points and diesel by one percent in a move apparently aimed at mopping up additional revenues in the face of pandemic-hit cash flows. The hikes increase the retail price of petro by Rs 1.30 more per litre and that of diesel by about 60 paise.
Opposition parties slammed the hike in VAT on petrol and diesel accusing the government of imposing more burden on the common man already stressed by job losses and economic distress.
