Saturday, September 23 2006 12:29 Hrs (IST) - World Time -

New Delhi: Petroleum Minister Murli Deora has asked the Maharashtra Government to reduce the sales tax on auto fuel, which is highest in the country.

Deora, who met Minister for Agriculture Sharad Pawar Thursday (Sept 21,2006), discussed the issue of high sales tax rate in the state.

Maharashtra imposes 33 per cent sales tax on diesel and petrol, the highest in the country.

As many as 2,200 fuel dealers in Maharashtra had launched an indefinite strike since Sunday midnight seeking lower sales tax on auto fuel in the state.

The strike was called off after the dealers representatives were assured by the Petroleum Minister Murli Deora that the issue would be looked into.

Deora also discussed the issue with Maharastra Chief Minister Vilasrao Deshmukh and reiterated the need for reducing the high sales tax on petrol and diesel.

Deora will meet the Chief Minster again on Monday to discuss the issue.

The sales tax in Maharashtra is one of the highest in the country leading to its fuel prices being Rs 4-5 per litre higher than anywhere else in India.

The tax in the neighbouring states of Goa is 21 per cent, in Andhra Pradesh 28 per cent and in Karnataka 30 per cent.

The dealers have demanded a 26 per cent sales tax on the petrol and diesel.