Deora asks states to lower tax on diesel

New Delhi, Jul 16 (ANI): Minister of Petroleum and Natural Gas Murli Deora today welcomed the Delhi government's move to lower the Value Added Tax on diesel, and reiterated his earlier appeal to other state governments to reduce and rationalize the Sales Tax/VAT on sensitive petroleum products - PDS kerosene, diesel and petrol to provide relief to the consumers.

Deora complimented Delhi Chief Minister Shiela Dikshit for reducing VAT on diesel from 20 percent to 12.5 percent, resulting in a Rs 2.70 per litre fall in prices.

Deora said the move would provide relief to the consumers from the additional sales tax levied as a result of recent price hike due to the advalorem nature of the State taxes and in fact bring down Diesel prices to a level lower than the prices prevailing before the increase effected on 25th June, 2010.

He expressed hope that other States would also follow Delhi's example to provide relief to consumers.

Deora also pointed out that the Central Excise Duty on Petrol and Diesel has been converted into fixed rates while the excise and customs duty on PDS Kerosene and Domestic LPG has been reduced to nil being common man's fuel. (ANI)