Four states cut tax on petro products
Friday, 19 November 2010, 06:19 IST
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New Delhi: Only four states have reduced the rate of tax on petroleum, Minister of State for Petroleum and Natural Gas Jitin Prasada said Thursday. This is despite the petroleum ministry's appeal to state governments to rationalize the tax structure on petro products, the minister said. In a written reply in the Lok Sabha, Prasada said the central government had asked states to shift from ad-valorem tax rates to specific tax components on the four petro products which are petrol, diesel, kerosene and cooking gas "to provide relief to the consumers". But the petroleum ministry has not recommended any uniform tax rate to the state governments. Delhi was the first to reduce the VAT rate on diesel from 20 to 12.5 percent. Bihar cut its VAT on kerosene from 12.5 percent to 4 percent in July. Goa has made substantial cuts in VAT for petrol and diesel while exempting cooking gas from it entirely. West Bengal removed the sales tax on kerosene in September.
Source: IANS
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