The government has decided to forgo Rs 1.26 on petrol, which was the VAT on a hike of Rs 6.28, this was announced in the budget today. Petrol will now cost Rs 71.92 after the cut, a relief of Rs 1.26 from Rs 73.18.
"The price of petrol in Delhi is the lowest among all the metro cities and lower compared to the price in neighbouring cities of Haryana, Uttar Pradesh also. I have deeply considered the matter and of the view that the citizens of Delhi need to be provided some relief," she said.
However, the CNG price will see an increase from Rs 35.45 per kg following the five per cent hike in VAT.
Defending the introduction of VAT for CNG, Dikshit said, "we have continously forgone VAT on CNG...It is relevant to mention that UP and Haryana are already levying 12.5 per cent and five per cent VAT respectively."
Other than petrol, what all will cost less in Delhi from now? Hairpins, hairclips, safety pins, saree falls, kirpans, sacred threads, tricycles, kites, geometry boxes, crayons and pencil sharpners are some of the articles which will cost less in the capital as Delhi government proposed a exemption from VAT.
"For the welfare of kids, I propose to exempt VAT on tricycles and kites. In addition, for the school going children geometry boxes, colour boxes, crayons and pencil sharpeners, presently taxable at 5 per cent, shall also be exempted," she said.
Other articles which get VAT exemption or slashing of rates include blood filters.
In a bid to discourage consumption of tobacco and tobacco products, which is one of the major causes of many dangerous diseases, Dikshit said, she intended to increase VAT on unmanufactured tobacco, bidis and tobacco used in manufacture of bidis and hooka tobacco to 20 per cent from 12.5 per cent. MORE