The Hindu : National : U.P. cuts tax on petrol, diesel

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Sunday, Jun 08, 2008
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U.P. cuts tax on petrol, diesel

Atiq Khan

Withdraws value added tax on LPG; no hike in bus fare

LUCKNOW: The Uttar Pradesh government on Saturday reduced sales tax on diesel and petrol by 4.84 and 2.38 per cent, and withdrew the four per cent Value Added Tax on LPG. The new ST rates would come into effect immediately.

Following the decision, approved by the Cabinet, the price of diesel would come down by Rs. 1.50 a litre and that of petrol by Re. 1. An LPG cylinder will become cheaper by Rs. 11.35.

Despite the increase in diesel price, effected by the United Progressive Alliance government, which caused an additional burden of Rs. 120 crore on the State Road Transport Corporation, the State government decided against increasing bus fare, Chief Minister Mayawati told journalists here.

Ms. Mayawati said the revenue loss consequent to the decisions, estimated to be Rs. 2,500 crore a year, would have an adverse impact on ongoing development projects.

The pace of progress would slow down, and some development schemes were likely to be withdrawn for want of funds. She held the UPA responsible for the crisis.

Ms. Mayawati said the impact of scaling down of sales tax would not be felt by the Congress-ruled States as the UPA government was out there to bail them out by channelling funds through “the backdoor.”

The Cabinet also approved the setting up of a university for persons with physical disability.

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