Delhi Cabinet decides to lower VAT on diesel to 16.75%

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New Delhi (NVI): The Delhi government today anounced reduction in the Value Added Tax (VAT) on diesel from the existing 30 per cent to 16.75 per cent in the national capital.

In a Cabinet meeting chaired by Delhi’s chief minister Arvind Kejriwal, it was decided to reduce the VAT on diesel from 30 per cent to 16.75 per cent. The reduction will bring down diesel prices in Delhi to Rs 73.64 from Rs 82, the chief minister said.

He also added that, this is one of the several measures taken by our government to revive Delhi’s economy. Earlier this week, we had launched a portal to connect job seekers with potential employers.

The rate of diesel vary from state to state depending on the incidence of local sales tax or VAT, the national capital has the cheapest diesel rate while in Rajasthan a litre of diesel costs Rs 82.64.

Likewise in Madhya Pradesh Rs 81.29 while in Maharashtra Rs 79.81 and in Chhattisgarh one has to shell out Rs 79.68 for a litre of diesel.

The fuel prices have been on the rise since the daily price revision resumed after a pause of 82 days on June 7.

However, the rates of diesel have continued to be revised now and then in July. The cumulative increase in diesel price since June 7 now totals Rs 12.55 per litre while the petrol prices have risen by Rs 9.17 a litre.

-RJV