VAT CUT, PETROL IN DELHI WILL BE CHEAPER BY RS 8

The Delhi government on Wednesday reduced the Value Added Tax (VAT) on petrol from 30% to 19.40%. The decision was taken during the Cabinet meeting chaired by Delhi Chief Minister Arvind Kejriwal on Wednesday.

Following this, the price of petrol in Delhi is likely to get cheaper by approximately Rs 8. The new rates came into effect from midnight on Wednesday.

On the eve of Diwali this year, the Centre cut excise duty by Rs 5 per litre on petrol and Rs 10 per litre on diesel to bring down the retail prices across the country. The Centre had urged the states “to commensurately reduce” VAT on the two petroleum products to give relief to consumers. Several states have already cut VAT on petrol and diesel.

On 12 November, the Ministry of Petroleum and Natural Gas had said that following the decision of the Government of India to reduce central excise duty on petrol and diesel by Rs 5 and Rs 10 respectively, 25 states and Union Territories have also undertaken a commensurate reduction of VAT on petrol and diesel so far.