Goa to lose Rs 165 crore by abolishing VAT on petrol

PANAJI: Goa government will lose a revenue of Rs 165 crore for the current financial year due to its decision to abolish value added tax (VAT) on petrol, slashing its prices to the lowest in the country.

Chief minister Manohar Parrikar told the state Legislative Assembly in a written reply that the government has already lost Rs 30.68 crore in the first two months since April 1, 2012, when the VAT was abolished.

The petrol prices were dropped by Rs 11 after abolishing the VAT.

The VAT of just 0.1 per cent is charged on petrol. "Goa lost Rs 15.70 crore in revenue in April, while in May it lost Rs 14.98 crore," the reply mentioned.

Parrikar said that annually the state will suffer loss of Rs 165 crore due to this move.