More states announce withdrawal of VAT on fuel

LPG cylinders in Delhi will cost Rs 40 less for BPL and Antyodaya families and diesel 37 paise less for all, according to a city government decision aimed at providing relief from the recent hike prices of oil products.

Diesel will now cost Rs 40.75 a litre in New Delhi for all consumers while LPG will be priced at Rs 355.35 per cylinder for families covered under BPL and Antyodaya schemes.

In Kerala, the Congress-led UDF government preferred to forgo additional taxation to the exchequer by lowering diesel price by 75 paise a litre. While responding to an adjournment notice by the LDF opposition on fuel price hike, Chief Minister Oommen Chandy announced in the Assembly that the state would give up the additional tax it could get by way of diesel price hike.

Uttarakhand also announced that it would waive VAT on kerosene. It  would not charge VAT on the amount recently increased for diesel and LPG. Chief Minister Ramesh Pokhriyal Nishank said his government was acting to alleviate the sufferings of people already reeling under the mounting food inflation due to “anti-poor” UPA government.

States, including Haryana, have resorted to similar measures attempting to soften the impact of the hike on petroleum products.

West Bengal Chief Minister Mamata Banerjee on Saturday decided to withdraw sales tax on cooking gas, which would reduce the price of a LPG cylinder in that state by Rs 16.

Himachal Pradesh exempted kerosene from tax, while reducing the tax on diesel to 9.70 per cent from the present 14 per cent. There would be “zero” VAT on kerosene, a relief of 13.5 per cent while reduction in VAT on diesel would be 4.30 per cent. Diesel and LPG will also cost less in Punjab. The state government took a decision not to charge VAT on petroleum products, Chief Minister Prakash Singh Badal said.