VAT on diesel reduced, LPG made VAT free by Haryana govt
Acting as per the directions of Congress President Sonia Gandhi, the party-led Haryana government today reduced VAT on diesel while abolishing it on LPG but did not give any relief on petrol.
By PTI |
CHANDIGARH: Acting as per the directions of Congress President Sonia Gandhi, the party-led Haryana government today reduced VAT on diesel while abolishing it on LPG but did not give any relief on petrol.
"VAT on diesel has been reduced from 12 per cent to 8.8 per cent and LPG has been made VAT free. There would be no relief to the consumers using petrol," Haryana Chief Minister Bhupinder Singh Hooda told reporters after a special meeting of the state Cabinet.
The changes in VAT would result in a reduction in the price of diesel and LPG by approximately Re one and Rs 13 respectively following the steep hike in the prices announced by the Congress-led UPA government at the Centre two days back.
Hooda said the cabinet took the decision following the directions of Gandhi that the burden on the people should be reduced by the states by taking some steps.
The state would lose a total of Rs 357 crore-- Rs 312 crore from the sale of diesel and Rs 45 crore from the sale of LPG-- during the current financial year, he added.
Ruling out any relief in petrol prices, the Chief Minister said the product was already cheaper as compared to neighbouring states of Chandigarh, Punjab and Delhi.
Answering a query, he said that the cabinet did not discuss the issue of hiking fares of buses in the wake of increase in diesel prices.
Asked about the appeal for austerity made by Prime Minister Manmohan Singh, Hooda said that the state was already exercising restraint on wasteful expenditure.
"VAT on diesel has been reduced from 12 per cent to 8.8 per cent and LPG has been made VAT free. There would be no relief to the consumers using petrol," Haryana Chief Minister Bhupinder Singh Hooda told reporters after a special meeting of the state Cabinet.
The changes in VAT would result in a reduction in the price of diesel and LPG by approximately Re one and Rs 13 respectively following the steep hike in the prices announced by the Congress-led UPA government at the Centre two days back.
Hooda said the cabinet took the decision following the directions of Gandhi that the burden on the people should be reduced by the states by taking some steps.
The state would lose a total of Rs 357 crore-- Rs 312 crore from the sale of diesel and Rs 45 crore from the sale of LPG-- during the current financial year, he added.
Ruling out any relief in petrol prices, the Chief Minister said the product was already cheaper as compared to neighbouring states of Chandigarh, Punjab and Delhi.
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Answering a query, he said that the cabinet did not discuss the issue of hiking fares of buses in the wake of increase in diesel prices.
Asked about the appeal for austerity made by Prime Minister Manmohan Singh, Hooda said that the state was already exercising restraint on wasteful expenditure.
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