Delhi government cuts VAT on diesel to 16.75%; price to come down by Rs 8.36 per litre
The price of diesel will come down by Rs 8.36 per litre in the capital with the Delhi government rolling back its decision, taken in May, to hike taxes on the fuel.
Chief Minister Arvind Kejriwal announced that the rate of VAT on diesel was being brought back to 16.75 per cent from 30 per cent. The decision was taken in a Cabinet meeting this morning.
“The price of diesel was Rs 82 per litre on Wednesday. After the reduction of VAT, the new price will be Rs 73.64 per litre,” Kejriwal said, describing the move as a significant step to bring the economy back on track.
In May, the Delhi government had increased VAT from 27 per cent to 30 per cent on petrol and 16.75 per cent to 30 per cent on diesel. The decision was taken to generate revenue as the economy had to come to a complete halt due to the lockdown.
“Our main challenge now is to get the economy back on track. Many businesses are shut, industries are shut. This decision to lower VAT is an important step towards reviving the economy. We were getting representations from trade bodies that the high price of diesel was a source of difficulty,” the CM said on Thursday.