With the Centre slashing excise duty on petrol and diesel, the Chandigarh Administration has also announced a reduction of ₹ 7 per litre in value-added tax (VAT) on the fuels making them cheaper in the Union Territory.
"After the Centre cut levy on petrol and diesel, Chandigarh Administration has reduced VAT by Rs 7 on petrol and diesel with effect from midnight of November 4," an official statement said.
As per the notification issued by the Department of Excise and Taxation, UT Chandigarh, on Thursday, the VAT percentage on petrol has been reduced from 22.45% to 15.24% and on diesel from 14.02 % to 6.66%.
The Haryana government had also announced a reduction in VAT on the fuels on Thursday, making them cheaper in the BJP-JJP-ruled state by ₹12 per litre.
On Wednesday, the central government announced a cut in the excise duty on petrol and diesel by ₹5 and ₹10, respectively, bringing down their retail rates from record highs.
Reducing the excise duty, the Union government had urged States to commensurately reduce VAT on petrol and diesel to give relief to consumers.
Meanwhile, Shiromani Akali Dal President Sukhbir Singh Badal has urged the Charanjit Singh Channi-led Congress government to reduce VAT rate on petrol and diesel to provide relief to the consumers.
"High fuel prices have been eating into the Pbis (Punjabis) pocket. Centre's late reduction of rates is a half measure! On behalf of SAD & Punjab, I demand that CM @CharanjitChanni take note from other states & reduce sky high petrol and diesel prices by Rs 10. Punjab has suffered enough!," Mr. Badal tweeted.
