The Delhi government on Monday slashed sales tax on petrol bringing relief to the consumers to the tune of Rs 1.26, but CNG in turn will get costlier.
“We have reduced VAT to make petrol cheaper,” Delhi Chief Minister Sheila Dikshit said in a press conference.
This means petrol will now be Rs 1.26 cheaper at Rs 71.48 in Delhi. The government has decided not to charge 20 per cent VAT on the hike-amount.
However, VAT on CNG will be raised by 5 per cent thereby making CNG costlier.
“We did whatever we could. We could not do more due to budget constraints,” Sheila addeded.
Delhi is the fourth such state to cut taxes to make petrol cheaper. Goa, Uttarakhand and Kerala have already slashed taxes on petrol.