M A I N   N E W S

Petrol cheaper by 67 p, diesel 21 p in Haryana
Tribune News Service

Chandigarh, June 13
The Haryana Government will not charge value added tax (VAT) on the element of increase in the prices of petrol and diesel. This was decided at a meeting of the state Cabinet, which met under the chairmanship of the Chief Minister, Mr Bhupinder Singh Hooda, here today.

The price of petrol was increased by Rs 4 per litre and that of diesel by about Rs 2 per litre with effect from June 6. With a view to cushioning the hike in the prices of these items, the government decided not to charge VAT on the increase. The decision will come into effect from June 11.

The step will give relief of 67 paise per litre in the case of petrol and 21 paise per litre in the case of diesel. The tax reduction will be available to oil companies or dealers if the benefit is passed on to the consumers. As a result of this decision, the state government will lose revenue amounting to Rs 95 crore annually.

The Cabinet also decided to refrain from imposing VAT on the bonus announced by the Central Government on the MSP of wheat. This is to benefit farmers in the state, an official press release said, adding that the step would lead a one-time loss of Rs 5 crore to the state exchequer. The press note, however, mentioned that the bonus of Rs 50 per quintal of wheat was announced by the Centre on the condition that state governments fully exempted the bonus from state taxes and levies.