Puducherry reduces VAT on petrol, diesel by Rs 7

The AINRC-led NDA government in Puducherry on Thursday announced reduction in value added tax (VAT) on petrol and diesel by Rs 7 per litre which came into immediate effect.

Chief Minister N Rangasamy said that with the Centre slashing the excise duty on petrol by Rs 5 and on diesel by Rs 10, the territorial government decided to reduce the VAT on the petroleum products by Rs 7.

He hoped that this would benefit the public, farmers, industrialists and transport sector.

The VAT on petrol in Puducherry was 23 per cent which led to petrol being sold at Rs 107.79. The VAT has been reduced to 14.55 per cent and the price of petrol per litre here would be now be 94.94. A release said that the price of petrol in Karaikal will reduce to 94.69 per litre from Rs 107.52.

The release said that in Mahe, an enclave of Puducherry in Kerala, the price of petrol will now be Rs 92.52 from Rs 105.32 per litre.

Similarly, in Yanam, the VAT has been brought down to 15.26 per cent from 23.70 per cent(petrol price per litre at Rs 95.59 from Rs 108.47). The price of diesel has come down by Rs 19.08 per litre in Puducherry, Rs 19.06 in Karaikal, Rs 18.92 in Mahe and Rs 19.11 in Yanam region with the range of VAT now being between 6.91 per cent and 8.65 per cent.

Lt Governor Tamilisai Soundararajan said in a release that the file relating to the reduction in VAT on petrol and diesel decided by the government was approved and the reduced price came into immediate effect. The Centre had yesterday slashed excise duty on petrol and diesel by a record Rs 5 and Rs 10 per litre respectively.