India

Meghalaya government cuts VAT on fuel by Rs 5.20 per liter after cutting excise duty

By PTI

Shillong: The Meghalaya Democratic Alliance government on Friday, November 5, 2021 announced a reduction in Value Added Tax (VAT) on petrol and diesel by Rs 5.20 per litre.

Addressing reporters after the cabinet meeting, Deputy Chief Minister Preston Tynsong said, the state government had reduced VAT on petrol from 31.62 per cent or Rs 17.60 per liter to 20 per cent and 22.59 per cent or Rs 12.50 per liter in February this year. 12 per cent from a liter on diesel.

“With today’s decision, we have reduced the tax percentage on petrol from 20 per cent to 13.5 per liter and for diesel from 12 per cent to 5 per cent.

When converted into cash, this amount becomes Rs 5.20 per liter for both petrol and diesel.

After the reduction in VAT on the prices of both the fuels, Meghalaya will have the lowest price of petrol and diesel in the country,” claimed the deputy chief minister.

He said, “As per the advice of the Government of India, the state government has decided that further reduction in the prices of petrol and diesel is to be implemented immediately from Friday midnight.

Center on Wednesday Excise duty cut on petrol and diesel Record Rs 5 and Rs 10 per liter respectively, a move that has evoked a similar response by human states.

Responding to a question, the Deputy Chief Minister said that after the decision to cut its share in taxes on fuel, the state will suffer a revenue loss of around Rs 100 crore in the next five months from November to March 31, 2022.

Pointing out the importance of having an oil depot in the state, the Deputy Chief Minister said, “Right now the government has given serious attention to it and discussions are on with Indian Oil Corporation Limited (IOCL) and once we have the depot, After that, we will gain roughly 1.5 to 2 per cent more.”

Noting that the old depot at Umiam is closed for the past several years and the state government wants to revive it, Tynsong said, meetings are being held with the oil major and the process of finding land is on.

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