Vat slashed by per cent: Petrol price down by Rs 2.74 per litre, diesel by Rs 2.47 a litre

The Finance Ministry had recently asked the states to cut retail VAT rate on petrol and diesel by five percent. As per the new rates, diesel in the city will cost Rs 55.20 per litre while petrol will cost Rs 65.66 per litre from Tuesday midnight.

By: Express News Service | Chandigarh | Published: October 18, 2017 3:37 am
Chandigarh VAT Slashed, Petrol prices chandigarh, chandigarh petrol prices, Punjab Value Added Tax Act, 2005, chandigarh news, indian express news The Finance Ministry had recently asked the states to cut retail VAT rate on petrol and diesel by five percent. (Express Photo)

IN A relief to city residents, particularly motorists, the price of petrol were reduced by around Rs 2.74 per litre and diesel by Rs 2.47 per litre Tuesday after the UT Administration slashed the Value Added Tax (VAT) by five percent. The Finance Ministry had recently asked the states to cut retail VAT rate on petrol and diesel by five percent. As per the new rates, diesel in the city will cost Rs 55.20 per litre while petrol will cost Rs 65.66 per litre from Tuesday midnight.

A press release issued by the UT Administration Tuesday said, “In Exercise of the powers conferred by sub section (3) of the Section 8 of the Punjab Value Added Tax Act, 2005 (Punjab Act No. 8 of 2005), as extended to Union Territory, Chandigarh and all the other powers enabling the Administrator, Union Territory, Chandigarh, makes amendments with effect from October 18.”

A petrol pump owner said because UT had slashed the rates and Punjab and Haryana haven’t, the rates in Chandigarh have now become cheaper. Initially, UT was charging VAT of 24.74 per cent on petrol, while it 16.40 per cent on diesel. Baljinder Singh Bittu, chairman of Federation of Sectors Welfare associations of Chandigarh said it was a welcome move.

“At least, there has been some respite to the residents with the slashing of VAT,” he said. On Monday, MP Kirron Kher had sent a communication to the Governor of Punjab and UT Administrator V P Singh Badnore to cut Value Added Tax (VAT) on Petrol and Diesel by 5 per cent in Chandigarh.

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