Arvind Kejriwal announces value-added tax reduction to 16.75 per cent from 30 per cent.
The Delhi government has announced to lower the Value Added Tax (VAT) on diesel which would make the price of diesel in the national capital cheaper by 8.36 litre. As of now, the VAT in Delhi was 30 percent and the price of diesel was 81.94 per litre in Delhi after the reduction in VAT is reduced to 73.64.
The announcement was made by Delhi Chief Minister Arvind Kejriwal on Thursday about the value-added tax reduction to 16.75 per cent from 30 per cent. Kejriwal said, “This is one of the initiatives taken by Delhi government to revive Delhi’s economy, earlier this week we had launched portals to connect job seekers with potential employers.”
He stated further that his administration will reach out to several industry groups and experts over video conferencing to strive for more ways to put Delhi’s economy in a better position.
In national capital Delhi for the first time diesel has been selling at a higher price than petrol, this occurred due to the Delhi government’s decision to raise VAT on diesel sharply. The rates of diesel and petrol vary from state to state, it all depends on the local sales tax or VAT.
The rates of diesel have continued to be revised intermittently in July. The cumulative increase in diesel price since June 7 now sums up to Rs 12.55 per litre.
For the period of 82 days, the oil companies had not revised petrol and diesel prices as they adjusted a record increase in excise duty by the administration against the fall in rates which occurred due to international oil prices plunging to a two year low. In Delhi before June 6, petrol was being sold at Rs 71.26 per litre and diesel at Rs 69.39 a litre.
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