Chandigarh: Following the reduction in excise duty on petrol and diesel by the Centre, the Chandigarh Administration has announced a reduction in value-added tax (VAT) on the fuels of Rs 7 per litre, making them cheaper in the Union Territory, according to an official statement.
The VAT percentage on petrol has been reduced from 22.45 percent to 15.24 percent, and on diesel from 14.02 percent to 6.66 percent, according to a notification issued by the Department of Excise and Taxation, UT Chandigarh, on Thursday.
On Thursday, the Haryana government announced a reduction in VAT on fuels, making them Rs 12 cheaper per litre in the BJP-JJP-ruled state. The central government announced a Rs 5 and Rs 10 reduction in excise duty on petrol and diesel on Wednesday, bringing their retail prices down from record highs.
The Union government had urged states to reduce VAT on gasoline and diesel in proportion to the reduction in excise duty to provide relief to consumers. Meanwhile, Sukhbir Singh Badal, the president of the Shiromani Akali Dal, has urged the Charanjit Singh Channi-led Congress government to lower the VAT rate on gasoline and diesel to help consumers.