TN cancels 4pc VAT on LPG; price to come down by Rs15

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Days after the UPA government hiked the prices of LPG by Rs50 per cylinder, Tamil Nadu government on Tuesday cancelled a four per cent Value Added Tax (VAT) on LPG, bringing down the price of a cylinder by about Rs15 in the state.

Chief Minister Jayalalithaa said the move would come into effect from July 1.

The price of a LPG cylinder, which is now being sold at Rs404.40 will be revised to Rs389.67, resulting in a reduction of Rs14.73, she said in a government release here.

She said the state would not levy VAT on LPG in future also.

The UPA government had hiked the price of diesel by Rs3 a litre, kerosene Rs2 a litre and cooking gas by Rs50 a cylinder on June 24.