Team Herald
PANJIM: Keeping to its promise to maintain the price of petrol below Rs 60 a litre, the Goa government on Wednesday reduced value added tax (VAT) on the fuel by 5 per cent after the Centre announced a hike the previous night.
“Goa government has reduced VAT on petrol by 5 per cent bringing it to 15 per cent from 20 per cent,” Ajit Pawaskar, Under Secretary (finance), said.
Petrol prices had touched Rs 62 per litre in Goa after the price of petrol was hiked by Rs 2.58 per litre. “The petrol price is now Rs 59.60 per litre,” he said.
Earlier on Wednesday morning, Chief Minister Laxmikant Parsekar had said that as promised the government will ensure that petrol prices don’t cross Rs 60 per litre. “As promised, we will now reduce VAT,” he had said. Also last month the government had reduced VAT on petrol by 2 per cent.
The Chief Minister in his Budget had increased VAT on petrol to 22 per cent but had promised that the tax would be reduced if the price crossed Rs 60 per litre.
On forming the government in 2012 the BJP had brought down the price of petrol by Rs 11 per litre by reducing VAT. Petrol prices in Goa were cheapest after this and the State was losing Rs 150 crore annually due to this.
