The Hindu : Karnataka News : Goa reduces sales tax on petrol, diesel

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Saturday, Jun 07, 2008
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Karnataka

Karnataka

Goa reduces sales tax on petrol, diesel

Special Correspondent

VAT on domestic LPG cylinders waived

PANAJIL: The Goa Government on Friday announced a reduction in sales tax on petrol, diesel and domestic liquefied petroleum gas (LPG) cylinders with a view to offer some relief to the people following the recent hike in fuel prices.

Chief Minister Digambar Kamat told presspersons on Friday that following substantial hike in the prices of petrol, diesel and domestic LPG cylinders, the Government decided to reduce VAT (Value Added Tax) on petrol and diesel by two per cent and abolish VAT on LPG.

The VAT on petrol, which was 22 per cent, has been reduced to 20 per cent, and that on diesel from 21 per cent to 19 per cent. The VAT on LPG, which was four per cent, has been waived.

Following Friday’s restructuring of taxes, petrol would be cheaper by 84 paise, diesel by 64 paise and the cost of a domestic LPG cylinder would be reduced by about Rs. 10 against the enhanced rates, with immediate effect, Mr. Kamat said.

The net financial implication of the various measures to the State exchequer would to the extent of Rs. 21 crore, the Chief Minister said.

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