The Delhi Government on Wednesday brought down the Value Added Tax (VAT) on petrol to 19.4% from 30%. As a result, petrol will be cheaper by ₹8 per litre in the city. The decision was taken at a Cabinet meeting chaired by Chief Minister Arvind Kejriwal.
The new rate will come into effect on Thursday, according to an official notification.
“Today we made petrol very cheap in Delhi. VAT rate has been reduced from 30% to 19.4%. Petrol and diesel have become cheaper in Delhi as compared to other cities of NCR. I hope this step will give relief to the people of Delhi from inflation,” Mr. Kejriwal tweeted in Hindi.
But there was no announcement of a cut in VAT on diesel. “The diesel price in Delhi is already the cheapest in NCR at ₹86.67 per litre, while the rates in Noida and Gurugram are ₹87.01 and ₹87.11 per litre respectively,” a Government statement said. Last year, the Delhi Government had increased the VAT on petrol from 27% to 30%.
The BJP and the Congress hit out at the Delhi Government for not reducing the VAT on diesel and said that the step to bring down VAT on petrol had come late.
Leader of Opposition in Delhi Assembly Ramvir Singh Bidhuri demanded that Mr. Kejriwal reduce VAT on diesel, considering the welfare of farmers and public transport operators.
“VAT on diesel in Delhi is the highest compared to other States. This proves that Mr. Kejriwal is anti-farmer because transporters and farmers use only diesel to run their trucks and tractors,” Mr. Bidhuri said.
He said that a reduction in VAT on diesel would also help lower the prices of vegetables and other essential items, which would directly benefit the public.
Delhi Congress president Ch. Anil Kumar said that the persistent protests by his party forced Mr. Kejriwal to bring down VAT on petrol. “But unless VAT on diesel is also reduced, Delhiites will continue to suffer because of the soaring prices of essential commodities.”
The frequent hike in the prices of petrol, diesel and cooking gas had wrecked the lives of the people as it had a cascading effect on the costs of all essential commodities, Mr. Kumar said.
“Mr. Kejriwal tried to delay reducing VAT on fuel as long as possible and now has made a half-hearted effort by lowering it only on petrol,” the Congress leader said.
Both parties said that they will force the Government to reduce VAT on diesel as well if the CM does not do it immediately.
