The Goa government's decision to reduce VAT on petrol to just 0.1 per cent has set many other governments in trouble. Goa chief minister Manohar Parikkar has reduced Vat on petrol in Goa which effectively brings down petrol prices in the state by Rs.11.
Responding to this, Minister of State for Parliamentary Affairs Rajiv Shukla has asked state governments to emulate Goa and also reduce Vat. He was particularly targeting other BJP ruled states and asked them to follow their counterpart in Goa.
Recent reports say the Delhi state government could also follow Goa and reduce VAT on petrol. This could bring down petrol prices in the national capital by a whopping Rs.15. Petrol prices will come close to the Rs.50 mark if the delhi government truly reduces Vat on petrol.
The minister said most of the taxes on petroleum products were imposed by state governments. If state governments reduce taxes on fuel, petrol prices will definitely come down giving a relief to the common man.
He also said the central government had reduced customs duty on petroleum products to keep prices low. But he insisted that state governments were in abetter position to reduce prices as they impose more taxes. He also said state governments get about Rs.1.6 lakh crores as taxes from petroleum products.
Goa chief minister Manohar Parikkar had been seeking a reduction in petrol prices. This was also part of his manifesto when he went for polls earlier this year. Soon after he was elected as chief minister, Mr Manohar Parikkar has fulfilled his poll promise of cutting petrol prices.
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