Guj govt reduces VAT on petroleum products

Written by:
Subscribe to Oneindia News

Gandhinagar, Jun 10 (UNI) Gujarat government today announced a three per cent reduction in Value Added Tax (VAT) for petrol and diesel and a four per cent reduction in domestic LPG cylinders.

With reduction in VAT, now an LPG cylinder will be cheaper by Rs 13.5. Similarly, petrol and diesel will cost lesser by Rs 1.38 and Re 1, respectively, per litre. The state government at present charges 24 per cent VAT on petroleum products, a release said here today.

The decision was taken on the basis of recommendation of a four-member committee, headed by Gujarat Finance Minister Vajubhai Vala, to suggest ways to reduce the VAT on petroleum products.

The impact of the price rise of petroleum products announced by Union government and the tax reduction by the state government will leave the state poorer by Rs 1,450 crore.

The state government had earlier said the hike by the Union government will affect Gujarat badly, making it difficult to achieve the growth rate of 11.2 per cent.


Please Wait while comments are loading...