 "Meghalaya govt cuts VAT on fuel by Rs 5.20 per litre after excise duty cut")
The Meghalaya Democratic Alliance government on Friday announced a reduction in the value-added tax (VAT) on petrol and diesel by Rs 5.20 per litre each.
Addressing reporters after a Cabinet meeting, Deputy Chief Minister Prestone Tynsong said, the state government in February this year had already slashed VAT on petrol from 31.62 per cent or Rs 17.60 per litre to 20 per cent, and from 22.59 per cent or Rs 12.50 per litre to 12 per cent on diesel.
With today's decision, we have further reduced the tax percentage on petrol from 20 per cent to 13.5 percent per litre and from 12 per cent to 5 per cent per litre for diesel. The amount, if converted to cash, comes to Rs 5.20 per litre for both petrol and diesel.
After reduction of VAT on the prices of both the fuels, Meghalaya will have the lowest price of petrol and diesel in the country, the deputy chief minister claimed.
In line with the advice of the Government of India, the state government has decided that further reduction on the prices of petrol and diesel has to be implemented immediately from Friday midnight, he said.
The Centre had, on Wednesday, cut excise duty on petrol and diesel by a record Rs 5 and Rs 10 per litre respectively, a move which has evoked similar response by man states.
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Replying to a query, the deputy chief minister said following the decision to cuts its share of taxes on fuel, the state will incur a revenue loss of about Rs 100 crore for the next five months from November to March 31, 2022.
Pointing out the importance of having an oil depot of the state, the deputy chief minister said Right now the government has taken serious note of this and discussion is going on with the Indian Oil Corporation Ltd (IOCL) and once we have our depot, we will roughly benefit by another 1.5 to 2 per cent.
Mentioning that the old depot in Umiam has remained closed for the past many years and the state government wants to revive the same, Tynsong said, meetings are being held with the oil major and the process of finding land is on.