In a major development the price of diesel will come down by Rs 8.36 per liter in the capital with the Delhi government reversing its decision, taken in May, to hike taxes on the fuel.
Chief Minister Arvind Kejriwal announced that the rate of VAT on diesel was being brought back to 16.75 per cent from 30 percent. The decision was taken in a cabinet meeting on Thursday.
Delhi Cabinet has decided to reduce VAT on diesel from 30% to 16.75%. This will reduce price if diesel in Delhi from Rs 82 to Rs 73.64 i.e. by Rs 8.36 per litre | LIVE https://t.co/UDKzuSQJI9
— Arvind Kejriwal (@ArvindKejriwal) July 30, 2020
“The price of diesel was Rs 82 per litre on Wednesday. After the reduction of VAT, the new price will be Rs 73.64 per litre,” Kejriwal said, describing the move as a significant step to bring the economy back on track.
In May, the Delhi Government had increased VAT from 27 percent to 30 percent on petrol and 16.75 percent to 30 percent on diesel. The decision was taken to generate revenue as the economy had to come to complete halt due to COVID-19 lockdown.
“Our main challenge now is to get the economy back on track. Many businesses are shut, industries are shut. This decision to lower VAT is an important step towards reviving the economy. We were getting representations from trade bodies that the high price of diesel was a source of difficulty,” the CM said on Thursday.
