The reason behind the smuggling: in UP, VAT on petrol and diesel was 21 per cent, while in New Delhi and Haryana, it was 12 per cent.

Raising the issue during the Question Hour, BJP’s Hukum Singh said as tax rates on petroleum products in New Delhi and Haryana were less than Uttar Pradesh, people prefer to cross over to these states to get petrol or diesel.

“The sale of petroleum products in the state has dipped to Rs 402 crore litre in 2008. This, after the number of vehicles has grown manifold during the last decade,” said Singh.

He also alleged that smuggling was taking place under the nose of the police and the district administration.

He rejected the government’s contention that it will write to the Centre regarding this disparity in tax rates. He maintained the fault lies with the state government as it has imposed the tax and the Centre had no role to play here.

Meanwhile, RLD member Satyendra Solanki said the four CNG filling stations in Noida had to be shut down as government and private vehicles used to cross over to New Delhi for CNG, which is Rs 7 per kg cheaper than UP. Even buses of the state-owned transport corporation were buying gas from Delhi, he added. The indefinite closure of over 12,000 brick kilns across the state due to high rates of VAT also figured in the Assembly session. Raising the issue during the Zero Hour through an adjournment notice, Congress’ Pramod Tewari said: “Earlier, the kilns paid Rs 3 lakh annually under compounding scheme. But under VAT, the tax liability has risen to Rs 9 lakh annually. The strike by brick kiln owners has not only created crisis for over 2.5 lakh families of kiln workers, but prices of bricks have also skyrocketed leading to disruption in development works.”