The Uttar Pradesh government on Wednesday slashed Value Added Tax (VAT) on petrol and diesel to bring down their prices. The move came as the Centre reduced excise duty by ₹5 per litre on petrol and ₹10 a litre on diesel amid spiralling fuel prices while urging states to further bring down the rates.
A state official said the reduction in the levies will overall bring down the fuel prices by ₹12 per litre in Uttar Pradesh.
Chief minister Yogi Adityanath earlier indicated the reduction at a meeting on VAT on October 28. The state government imposed a VAT of 26.8% or ₹18.74 per litre, whichever was higher, on petrol and 48% or ₹10.41 per litre, whichever was higher, on diesel.
No additional details about the new rates of VAT were available till late Wednesday. People aware of the matter said the rates have been brought down by ₹7 per litre on petrol and ₹2 per litre on diesel.
VAT is a major source of revenue for the government, which earned ₹2200.4 crore, about 106% of the target of ₹2060.43 crore, through it in September. The earning was ₹1,653 crore in September 2020.
The government earned ₹12137.27 crore as VAT in the first six months of 2021-2022, or 39% of the annual target.
{{/usCountry}}The government earned ₹12137.27 crore as VAT in the first six months of 2021-2022, or 39% of the annual target.
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