Haryana accords approval to partially restore VAT on sale of Diesel and Petrol
T
he Haryana Government on Thursday decided to partially restore the VAT rate on the sale of Diesel and Petrol in view of the decrease in the price of nearly Rs 15 per litre compared with their prices in October 2018.
The increase in the rate of tax would be Re.1 per litre in the case of Petrol and Re. 1.1 per litre in case of Diesel, the state government said.
As per the proposed amendment, the rate of tax will be restored to 25 percent (effective rate 26.25 percent including surcharge) on Petrol and 16.40 percent (effective rate 17.22 percent including surcharge) on Diesel, that is pre-October, 4, 2018 levels and a fixed rate of tax per litre may be increased from Rs.8.15 (effective rate Rs. 8.56 including surcharge) per litre to Rs. 9.20 per litre (effective rate Rs.9.66 including surcharge) in case of Diesel and from Rs.14.25 (effective rate Rs. 14.96 including surcharge) per litre to Rs. 15.20 per litre (effective rate Rs. 15.96 including surcharge) in case of Petrol.
It is also proposed that the condition of the legal notice of 10 days may also be dispensed with as huge financial implications are involved, the state government added.
As per proposed amendments, the ad valorem rate of 17.22 percent will trigger, when Retail Sale Price is more than Rs. 65.75 in case of Diesel and ad valorem rate of 26.25 percent will trigger when Retail Sale Price (RSP) is more than Rs.76.76 in case of Petrol.
With the proposed increase, the state will be able to garner additional tax of Rs.49 crore per month from Diesel and Rs. 12 crores per month from Petrol making it approximately Rs. 61 crore per month, presuming that the present volume of sales will remain unaffected.
✔️ Haryana accords approval to partially restore VAT on sale of Diesel and Petrol
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