Sheila offers cosmetic relief
26 May 2012 1:36 AM GMT
As a sop to consumers burdened with the steep petrol price increase, the Delhi chief minister Sheila Dikshit said on Friday that the value added tax (VAT) would possibly be reduced in the forthcoming annual budget session of Delhi. The session is slated to start from Monday.
On Wednesday, the government set an all-time record when it hiked the petrol prices by Rs 7.50 per litre. After the hike, the petrol price has gone up in Delhi to Rs 73.18 per litre from Rs 65.64. If the Delhi government cuts the VAT on fuel, its price would come down to Rs 71.68.
Officials indicated that government may cut the 20 per cent VAT component on the hiked amount of Rs 7.50, which will bring down the rate of per litre of petrol by Rs 1.50.
Dikshit, without specifying the quantum of the possible relief, said that the government was examining the issue and would do something similar to slashing the state tax when price of diesel was hiked last year. She said, ‘We will see what we can do and wait till Monday for my budget. We had given relief last time when price of diesel was hiked. We will do something this time as well.’
Earlier, following a hike of Rs 3.37 per litre of diesel in June last year, the Delhi government had slashed the rate by 37 paise, removing the 12.5 per cent VAT component on the hiked amount.
Dikshit also justified the steep hike, saying oil companies were incurring huge losses and the hike was necessary.
The Congress governments in Kerala and Uttarakhand have already decided to waive off VAT on the increased amount. Both governments waived tax on the additional amount to bring down the fuel price by up to 25 per cent.
On Wednesday, the government set an all-time record when it hiked the petrol prices by Rs 7.50 per litre. After the hike, the petrol price has gone up in Delhi to Rs 73.18 per litre from Rs 65.64. If the Delhi government cuts the VAT on fuel, its price would come down to Rs 71.68.
Officials indicated that government may cut the 20 per cent VAT component on the hiked amount of Rs 7.50, which will bring down the rate of per litre of petrol by Rs 1.50.
Dikshit, without specifying the quantum of the possible relief, said that the government was examining the issue and would do something similar to slashing the state tax when price of diesel was hiked last year. She said, ‘We will see what we can do and wait till Monday for my budget. We had given relief last time when price of diesel was hiked. We will do something this time as well.’
Earlier, following a hike of Rs 3.37 per litre of diesel in June last year, the Delhi government had slashed the rate by 37 paise, removing the 12.5 per cent VAT component on the hiked amount.
Dikshit also justified the steep hike, saying oil companies were incurring huge losses and the hike was necessary.
The Congress governments in Kerala and Uttarakhand have already decided to waive off VAT on the increased amount. Both governments waived tax on the additional amount to bring down the fuel price by up to 25 per cent.
Next Story
