Haryana waives VAT on kerosene

June 26th, 2011 - 10:45 pm ICT by IANS  

Bharatiya Janata Party Chandigarh, June 26 (IANS) Marginally lessening the burden on the people of Haryana from the recent hike in kerosene prices, the state government Sunday waived the value added tax (VAT) on the fuel.

Haryana Chief Minister Bhupinder Singh Hooda announced the decision of the state government to waive off five per cent VAT on kerosene, thus making it cheaper by 70 paise per litre in the state.

Kerosene users in Haryana will now have to pay Rs 14 per litre instead of Rs 14.70 per litre price owing to the increase announced by the central government Friday.

The VAT on liquefied petroleum gas (LPG) had already been waived in Haryana in 2008.

“The waiver on kerosene today makes Haryana a VAT-free state for these two key items,” Hooda said here in a statement.

He hinted that the state government would also take more steps to control price rise in the state.

The central government, after announcing the hike in diesel, kerosene and LPG prices by Rs.3 and Rs.2 per litre and Rs 50 in case of LPG cylinders, had asked state governments to reduce state-level taxes to lower the prices of these commodities.

Hooda said that the state was charging minimum 8.8 per cent (9.24 per cent, including surcharge) on diesel, which was the lowest VAT rate in the country.

He justified the increase in prices of diesel, kerosene and LPG cylinders saying that the central government had to increase the rates of petroleum products due to the hike in the global prices of oil.

Hooda pointed out that the Bharatiya Janata Party (BJP)-ruled states were charging maximum VAT on diesel which was 24.7 per cent in Gujarat, 23 per cent in Madhya Pradesh, and 22 per cent in Chhattisgarh.

“The diesel rates in Haryana were also the lowest in the country,” he added.

He said that the rebate on LPG cylinders given to the people of Haryana would continue.

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