PANJIM, JULY 14
In a bid to give some respite to the common man from the fuel price hike, the State government today decided to abolish value added tax (VAT) on liquefied petroleum gas (LPG) and reduce the tax on other petroleum products.
Disclosing this at the post cabinet briefing, Chief Minister Digambar Kamat said that the State was examining the possibility of reducing VAT on petroleum products to ease the prices since the price hike announced by the Centre last month.
He said the Union Petroleum Minister Murali Deora had asked the chief ministers of all States to reduce VAT.
According to the government decision, VAT on LPG, which was four per cent, has been abolished while on petrol and diesel, on which VAT was charged at 20 and 21 per cent respectively, has been reduced by two percent.
“LPG would be cheaper by Rs 15 in Goa while petrol and diesel would be cheaper by 0.88 paise and 70 paise respectively,” Kamat stated.
The opposition Bharatiya Janata Party (BJP) had protested against the petroleum product hike and observed one day bandh on July 5 in view of the increase in fuel prices.
Party leader Manohar Parrikar had said that the State can reduce the tax on petroleum products so as to give relief to the common people.
Asked about the delay in reducing taxes, he said, “Generally, there is uniformity in VAT between various States. This aspect also was needed to be considered,” Kamat, who is also holding the finance portfolio, said adding “I think Goa is the only State in India to reduce VAT so far.”
Kamat said the reduction of VAT will have a financial iplication of Rs 41 crore annually.
To a query Kamat replied the new rates would be applicable once the notification is issued tomorrow.
