Delhi govt reduces VAT on diesel to fire up economy

New Delhi, July 30: Chief Minister Arvind Kejriwal on Thursday announced a reduction in the Value Added Tax (VAT) on diesel from the existing 30 per cent to 16.75 per cent, saying the move will help propel Delhi's economy.

The diesel price will be reduced by Rs 8.36 in Delhi due to the VAT cut, Kejriwal said in a virtual press briefing.

He said there was a serious challenge of reviving the economy of Delhi but it will be achieved together with cooperation of people.

The diesel price will now come down from Rs 82 a litre to Rs 73.64 a litre, he said and added that traders and industrialists in the city had demanded it.

The decision was taken in a meeting of the Delhi Cabinet chaired by the chief minister.

"The Delhi cabinet has decided that the VAT on diesel will be reduced to 16.75 per cent, which will be a huge relief to the people of Delhi. The diesel prices in Delhi will be reduced by Rs 8.36 per litre, which means that the diesel will now cost Rs 73.64 per litre instead of Rs 82 per litre," announced the CM.

"The two crore people of Delhi have brought Corona under control. However, we need to ensure social distancing and wear masks, because if we become complacent, Corona might spike again. We now need to focus on how we can revive the economy of Delhi because many people have been affected due to shutting down of businesses and industries," Kejriwal said.

"People of Delhi have accepted big challenges in the past and have overcome them. We will accept and win this economic challenge as well. A crucial decision was taken in a cabinet meeting that was held today, which I believe will be an important step in taking the economy forward," he added.

Many industries, businessmen and traders were demanding a reduction in the prices of diesel, because the prices were affecting the budget of the people, and impacting the trade and businesses.

"In the last one week, we have taken several measures to boost the economy of Delhi. On Monday, I had announced that the street vendors and hawkers in Delhi are facing many difficulties, and subsequently, the street vendors were allowed to operate their businesses in the city," he said.

"We also started a job portal which acts as a platform between businessmen, traders and industrialists, whose factories and businesses were shut down due to migration of labour and people who want to work but they do not know where to find the right opportunities for them," Kejriwal further said.

To bridge the gap between job providers and job seekers, we started a portal 'Rozgaar Bazaar'. We have received a massive response on the portal.

"I am very happy that it has just been three to four days since we have started the job portal. Around 7577 companies have registered on the job portal, 2,04,785 jobs have been advertised here, and 3,22,865 job seekers have applied in the portal.

I was watching on a TV channel that an owner of a jeans manufacturing unit said that he had a staff of 35 people in the unit, out of which only 3 are still working and the rest had left the job.

He said that he was not finding manpower due to which he was not able to restart his manufacturing unit. He posted 35 job vacancies on the Delhi govt's job portal, and has received more than 190 calls who are ready to work in the unit. I believe that our economy will receive a major push," added the CM.

CM Arvind Kejriwal also appealed to the traders, industrialists, and businessmen, to join hands in bringing the economy of Delhi back on track.

He said, "I want to appeal to all the shopkeepers, traders, and industrialists to open their shops and industries, maintain social distancing, wear masks but restart their operations and work. In the coming days, I will be meeting many industrialists and traders through video conferencing on Zoom and will try to resolve any issues that they are facing."