Team Hearald
PANJIM: Goa government on Friday issued notification to reduce VAT on diesel from 22% to 19%. However, the price of diesel in Goa will be cheaper by Rs 1.40 per litre from midnight. The new price in effect will be Rs 56 per litre. It was to Rs 57.40 per litre earlier. However, with this reduction, diesel price in Goa will be cheaper by 50 paisa compared to the price in neighbouring Karnataka thus resulting in a loss of revenue to the state government.
Sources from the Commercial Taxes department confirmed that the state will lose revenue. “With this reduction of VAT from 22 to 19 per cent on diesel, the state government is set to lose Rs 3 crore revenue,” said the office of commercial taxes.
