The Union petroleum minister, Mr Murli Deora, has written to the chief ministers requesting them to bring down VAT on petrol and diesel so that the common man can get these products at cheaper rates.
The minister also asked the states to convert ad-valorem levies on petroleum products by specific ones so that consumers are insulated when international prices rise.
“While I appreciate your need for revenue mobilisation, the current high levels of local taxes on petroleum products are clearly unsustainable, if we are to protect the interests of the consumers, particularly the vulnerable sections of society,” the minister said.
He said the VAT rates are high in most of the states and need to be reduced. In some of the states, the VAT on petrol and diesel is as high as 33 per cent and 24.7 per cent respectively.