Dealers, citizens happy over diesel cut
In a breather for Delhiites, diesel will cost Rs 2.50 less per litre, which will come into effect from July 20.
Reacting to the Delhi government decision, the Delhi Petrol Dealers Association said the decision will bring the much desired relief to the common man. However, it renewed the demanded to bring parity in VAT rates of diesel between Delhi and Haryana.
“There continues to be a gap of over 4 per cent in the cost of diesel between the two states which is affecting our sales,” said the DPDA officials.
Delhi-NCR Petrol-Diesel Dealers Association president Ajay Bansal on Friday stated that the association is happy with the decision to roll back VAT on diesel. Mr Bansal added that the roll back will bring back business to the petrol pump owners in the city.
Delhiites were shelling out Rs 40.10 per litre on diesel after its prices were increased by Rs 2 by the Centre on June 25.
After the Cabinet meeting, Ms Dikshit said the decision to slash the VAT on the diesel was taken after it was found that the city government was losing revenue from selling of diesel as people preferred to buy the fuel from neighbouring cities of Haryana where the rate was much less. The decision will also help contain inflationary trend and bring relief to the common man, the chief minister said.
Delhi Petrol Dealers Association (DPDA) have been demanding a cut in VAT on diesel holding that sale of the fuel had come down drastically after the tax was increased in the budget. The VAT on diesel in Haryana is 8.8 per cent.
The Chief Minister also said the Union government has already hinted that diesel prices will also be deregulated like the petrol prices and the cut in VAT was “necessary”. Meanwhile, the government has also decided to bring down the VAT on dry fruits from 12.5 per cent to five per cent. VAT was increased to 12.5 per cent from five per cent in the Delhi budget.
Mr Walia, while presenting the budget earlier this year, had defended the hike of VAT on diesel citing examples of other states like Madhya Pradesh and Punjab, saying that they charge a far higher VAT on diesel than Delhi.
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