New Delhi: Meghalaya Democratic Alliance-led government, on Friday (November 5), announced a cut in value-added tax (VAT) charged on petrol and diesel by Rs 5.20 per litre each. The decision was taken two days after the Central government announced a reduction in excise duty on petrol and diesel by Rs 5 and Rs 10, respectively.
The step was taken in a state government's Cabinet meeting, post which Deputy Chief Minister Prestone Tynsong said the state government had already slashed VAT on petrol from 31.62 per cent or Rs 17.60 per litre to 20 per cent, and from 22.59 per cent or Rs 12.50 per litre to 12 per cent on diesel in February 2021.
“With today's decision, we have further reduced the tax percentage on petrol from 20 per cent to 13.5 per cent per litre and from 12 per cent to 5 per cent per litre for diesel. The amount, if converted to cash, comes to Rs 5.20 per litre for both petrol and diesel. After reduction of VAT on the prices of both the fuels, Meghalaya will have the lowest price of petrol and diesel in the country,” the deputy chief minister claimed.
“In line with the advice of the Government of India, the state government has decided that further reduction on the prices of petrol and diesel has to be implemented immediately from Friday midnight,” he said.
In response to a media query, Tynsong said that following the decision to cuts its share of taxes on fuel, the state will incur a revenue loss of about Rs 100 crore for the next five months from November to March 31, 2022. Also Read: Elon Musk's Starlink to collaborate with Indian telcos for broadband service
“Right now the government has taken serious note of this and discussion is going on with the Indian Oil Corporation Ltd (IOCL) and once we have our depot, we will roughly benefit by another 1.5 to 2 per cent,” he added. Also Read: Cairn Energy changes its name to Capricorn Energy
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