Stating that prices of fossil fuels are lower in Jammu and Kashmir than the neighbouring states, Chief Minister Omar Abdullah on Friday proposed to reduce rebate on petrol by Rs. 1 per litre while presenting the budget 2025-26 of J&K in the Legislative Assembly.
“The fossil fuels are presently essential to our development, the encouragement to their consumption needs to be gradually reduced to encourage shift towards use of cleaner technologies,” Omar said.
He said the prices of these fossil fuels are lower in Jammu and Kashmir than neighbouring States, like Punjab, Haryana, Himachal Pradesh, and Delhi.
The CM, however, proposed to reduce rebate on Petrol by Rs. 1 per litre and on HSD by Rs. 2 per litre and increase tax rate on aviation turbine fuel to five percent.
“We are losing tax revenue due to purchases of new and used vehicles from outside Jammu and Kashmir. But these vehicles use the public road and parking infrastructure in Jammu and Kashmir,” he said.
“Such purchases from outside Jammu and Kashmir not only cause revenue loss but also deprive local dealers of business. Hence for all fresh non-transport vehicles having an authorized dealership and sale point in Jammu and Kashmir but purchased from outside Jammu and Kashmir shall be levied 12 percent road and token tax,” Omar said.
Thus, there will be a 3 percent green cess over and above the existing tax rate on such vehicles, he said.