New Delhi:
Union petroleum minister Dharmendra Pradhan on Wednesday asked the state government to reduce the VAT by 5 percent so the consumers will get more relief.
While talking to reporters, Pradhan said that Union finance minister will be writing a letter to all states requesting to slash VAT on fuel.
He said, “We urge states to take responsibility just like the Centre did, in direction of consumer interest.†Â
On Tuesday, the government today cut excise duty on petrol and diesel by Rs 2 per litre each to moderate the relentless rise in fuel prices witnessed for the last three months.
Petrol and diesel will cost Rs 2 a litre less from Wednesday after the first excise duty cut by the Modi government comes into effect. Petrol currently costs Rs 70.88 per litre in Delhi while a litre of diesel is priced at an all-time high of Rs 59.14.
If states slash VAT (on fuel) by 5%, consumers will get more relief: Petroleum Minister Dharmendra Pradhan pic.twitter.com/FLWL2N6DyU
— ANI (@ANI) October 4, 2017
The excise duty cut would cost the government Rs 26,000crore in annual revenue and about Rs 13,000 crore during the remaining part of the current fiscal year that ends on March 31, 2018, an official statement announcing the reduction said.
Finance Minister will be writing to all the states (regarding slashing VAT levied on fuel): Dharmendra Pradhan pic.twitter.com/HSe45O8M9r
— ANI (@ANI) October 4, 2017
