New Delhi: Finance Ministry on Tuesday declared that the central administration advised state administration to decrease sales tax or VAT (Value Added Tax) on the petrol and diesel price by over 5 per cent. This will help users crossways the nation be benefitted of Rs 2 reduced in excise duty.
Petroleum and Natural Gas Minister Dharmendra Pradhan on Wednesday conveyed that we have reduced excise duty. And now it is the turn of states to cut the VAT rates. Pradhan renowned that Finance Minister Arun Jaitley will soon stress to all state chief ministers requirement to benefit customers.
Minister Pradhan further added that states will be more benefitted from it. They get all VAT collection and at least 42 per cent central excise collections. And lately the amount remained with Centre mainly that will be used to finance centrally sponsored schemes in states.
He focused that the state administration inflict VAT as duty which ahead rises prices of fuel, whenever center raises price. On Tuesday the reduction of excise duty also decreased the petrol prices for users Rs 2.5 per litre and diesel by Rs 2.25 per litre.
Minister Pradhan repeats that the decision to lessen excise duty, a revenue loss of Rs 26,000 crore to the central administration. The excise duty on petrol decreased to Rs 19.48 from Rs 21.48 per litre and on diesel to Rs 15.33 from Rs 17.33 per litre before.