A day after the Aam Aadmi Party (AAP) government passed the value-added tax (VAT) (Second Amendment) Bill, 2015, which allow the government to regulate the VAT, it not only came under the attack of the opposition but also faced criticism of the Delhi Petrol Pump Association.

The association on Wednesday came out strongly against the Delhi government and condemned its move to increase VAT.

Requesting the Delhi government to review its decision, association spokesperson Atul Peshwaria, said, “Any increase in the prices of petrol and diesel would fuel inflation invariably." He said, "Such a move would hit petrol pumps in Delhi and would also lead to huge revenue loss of VAT from petroleum products. It would also lead to layoffs of staff at petrol pumps inducing recession.’

Meanwhile, the Indian National congress&’s (INC) youth wing, the National Students’ Union of India (NSUI), on Wednesday protested outside Delhi Chief Minister Arvind Kejriwal&’s resident against the VAT amendment bill. Over hundreds of Congress workers, with posters and banners, raised slogans against the Kejriwal-led government.

Accusing the AAP of cheating the people,Delhi Pradesh Congress Committee (DPCC) spokesperson Sharmistha Mukherjee said that the AAP government announced the budget as “Tax-free budget” to grab media attention. This is another glaring instance of the AAP government’s “U-Turn” on the promises made to the people in the Delhi assembly elections, he said.

Meanwhile, on Wednesday, state Bharatiya Janata Party (BJP) president Satish Upadhyay also accused the Kejriwal government of misleading people in Delhi. He warned of “Chakka Jam” (strike) if the prices were not rolled back within two days.

The Delhi assembly on Tuesday passed the Delhi Value Added Tax (Second Amendment) Bill, thus enabling the AAP government to regulate tax rates on 11 products, including petroleum products, tobacco, liquor and aerated drinks.

Currently, VAT on goods under the Fourth Schedule is fixed at 20 per cent but the amendment will enable the state government to impose rates ranging from 12.5 per cent to 30 per cent. The petrol price will be hiked by Rs.5.56 per litre to Rs.72.49 in Delhi if the proposal gets the final approval.