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Dharmendra Pradhan asks states to slash VAT on fuel by 5%
A day after the Central Government reduced the Basic Excise Duty rate on petrol and diesel by Rs. 2 per litre, Union Petroleum Minister Dharmendra Pradhan asked the states to slash the VAT on fuel by 5 per cent.
New Delhi: A day after the Central Government reduced the Basic Excise Duty rate on petrol and diesel by Rs. 2 per litre, Union Petroleum Minister Dharmendra Pradhan asked the states to slash the Value-Added Tax (VAT) on fuel by 5 per cent.
Pradhan said, "We urge the states to take the responsibility just like the Centre did, in direction of the consumer interest, so that they get more relief."
The oil minister also informed that Finance Minister Arun Jaitley would be writing to all the states regarding slashing VAT levied on fuel.
On Tuesday, the Centre announced that the excise duty on fuel would be cut, citing that the move was an attempt to "cushion the impact of rising international prices of crude petroleum oil, and petrol and diesel on their retail sale prices".
It also asserted that the decision has been taken by the government "in order to protect the interest of the common man".
The ministry stated that the Government will experience revenue loss of about Rs 26,000 crore in full year, while Rs 13,000 crore in the remaining part of the current financial year due to the duty reduction. (ANI)