The Hindu : New Delhi News : Diesel becomes cheaper from today

Online edition of India's National Newspaper
Wednesday, May 04, 2005

New Delhi

New Delhi

Diesel becomes cheaper from today

Staff Reporter

NEW DELHI: Diesel and sweets will become cheaper in Delhi from Wednesday with the Delhi Government having issued the notification for reducing Value Added Tax (VAT) on diesel from 20 per cent to 12.5 per cent, bringing it at par with the neighbouring States, and for lowering VAT on sweetmeat from 12.5 per cent to 4 per cent. The Delhi Cabinet had approved of this move on April 27.

The decision to reduce tax rate had been taken after approval came for the same from the Empowered Committee on VAT. With the notification being issued on Tuesday evening, the new rates for diesel would come into effect from Wednesday.

Incidentally, after the introduction of VAT on diesel on April 1, the prices of diesel had shot up by Rs. 1.80 from Rs. 26.40 to Rs. 28.20. But now though the Delhi Government would lose around Rs. 150 crores in revenue, the diesel users would get much relief. The decision has also come at a time, when diesel sales from outlets in Delhi have dropped by between 30 and 40 per cent resulting in a Rs. 2 crore daily revenue loss.

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