New Delhi, Jul 16 (ANI): Delhi Chief Minister Sheila Dikshit announced on Friday tha the Value Added Tax on diesel will be reduced from the existing 20 percent to the previous 12.5 percent, effective from July 20.
Talking to reporters in national capital New Delhi, Dikshit said the government has been losing revenue instead.
"Tax on diesel will be reduced from current 20 percent to the previous 12.5 percent, and also the VAT (Value-Added Tax) which have been put on dry fruits, that will also come down to five percent.
"So that is the two decisions because we studied the pattern what Delhi government have been able to earn out of this. We were losing revenue instead of gaining it, so therefore both in the interest of the traders and the government's own financial situation, we decided this in the cabinet," Dixit said.
The Delhi government had increased the Value Added Tax on diesel in March from 12.5 percent to 20 percent to meet the increased expenditure on projects related to Commonwealth Games 2010.
India is expecting huge inflow of tourists in New Delhi for the Games, as well as about 10,000 athletes from 71 teams representing 54 Commonwealth member states.
For this mega event, the Sports Ministry has spent another Rs 300 million to upgrade and renovate the hostels of the Delhi University, as a measure of accommodation for the Games tourist.
The 12-day sporting extravaganza will be India's biggest sporting event since the 1982 Asian Games in New Delhi. (ANI)