JAMMU, Mar 7: Asserting that the 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 the Union Territory 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,” Abdullah said.
He said that 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.
He also said, “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.”
“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 asserted.
Thus, there will be a 3 percent green cess over and above the existing tax rate on such vehicles, he said.
The Chief Minister said that his Government is dedicated to expanding social security for the most vulnerable sections of society while enhancing J&K’s competitiveness in the national economy through grassroots-level reforms.
“This Budget not only strengthens welfare measures but also drives transformative programs to accelerate infrastructure development, productivity, and economic growth, ensuring a more prosperous and inclusive Jammu and Kashmir,” he said.
“We need to ensure that this is done in a fiscally prudent manner. We need to explore every avenue for upscaling revenue generation while enhancing social protection for the poor,” said Abdullah.
The CM said, “We need to ensure cost savings through austerity measures and efficiency measures. We must also improve the impact of public expenditure by leveraging scale, competition and private initiative. In this direction, we will undertake rationalization of tax on fossil fuels.”
“To augment revenues, our government is committed to exploring the introduction or enhancement of various taxes, tariffs, fees, and royalties, as appropriate,” he said, stating that this approach will ensure sustainable fiscal growth while balancing economic development and public welfare.
