The BJP government in Haryana Thursday announced a Rs 2.50 per litre cut in petrol and diesel prices while the Punjab government has called a meeting Friday to assess the implications of the Centre's suggestions on slashing fuel prices. The announcement of both the governments came after the Centre announced a Rs 2.50 per litre cut in fuel prices.
Haryana Finance and Excise and Taxation minister Captain Abhimanyu said the state government has reduced the prices of petrol and diesel by Rs 2.50 per litre to pass on a total relief of about Rs 5 per litre to consumers.
"Considering an appeal of Finance Minister Arun Jaitley, Haryana government has decided to cut petrol and fuel prices by Rs 2.50 per litre," Abhimanyu said while addressing media here. "We will reduce VAT on fuel which will come into effect from midnight," he further said.
"We have made an assessment that the price of diesel will reach Rs 71 per litre and petrol at Rs 79 a litre, said Abhimanyu. "With this price cut, annual impact on Haryana exchequer will be to the tune of Rs 1,920 crore, he said.
Meanwhile, Punjab Chief Minister Captain Amarinder Singh has called a meeting of officers of excise and taxation and finance department on Friday to assess the implications and the impact of the centre's suggestion to states on reducing fuel prices, officials said. Any decision on revising fuel prices will be taken after the meeting, they further said.
Amarinder, who was in Delhi, also spoke to Finance Minister Manpreet Singh Badal and asked him to make a presentation on this issue, officials said.
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The Centreannounced in Delhi a cut in petrol and diesel prices by Rs 2.50 per litre, factoring in excise duty reduction of Rs 1.50 per litre.
Finance Minister Arun Jaitley alsoasked state governments to follow suit by cutting a sales tax or VAT by a similar amount. The reduction followed petrol and diesel prices touching new highs.
Meanwhile,Shiromani Akali Dal (SAD) chief Sukhbir Singh Badal while welcoming the reduction in petrol and diesel rates, asked the Congress government in Punjab to immediate reciprocate and reduce VAT on both petrol products by Rs five per litre each keeping in view the fact that petrol and diesel prices in Punjab were the highest in north India.
In a statement here, the SAD president also asked the Congress government to immediately convene a special session of the Vidhan Sabha and table a resolution to bring both petrol and diesel under the GST ambit.
This will go a long way in giving a further relief to the common man as well as farmers by effecting a major cut in VAT and other taxes on these petro products, he added.
Badal said now was also the time for the Congress government to practice what it preached.
Pradesh Congress president Sunil Jakhar has been claiming that he will impress upon the State government to effect a reduction in prices of petro-products once the centre takes the initiative. Now this has been done. Now the Punjab government must effect a substantial cut as it is collecting the highest VAT on both petro products in Northern India. If it does not do this then it will be proved that the Congress government is neither 'lok hitaishi' nor 'kisan hitaishi', Sukhbir said.
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