Chandigarh, June 26–Providing a major relief to the common man from the price rise, the Haryana Chief Minister, Mr Bhupinder Singh Hooda, today announced the decision of the state government to waive off the five per cent value added tax (VAT) on kerosene. The decision to make kerosene VAT-free would make it cheaper by 70 paise per litre. Now, the consumer in Haryana would have to pay Rs 14 per litre instead of Rs 14.70 per litre.
The VAT on LPG having already been waived in 2008, the waiver on kerosene today makes Haryana a VAT-free state for there two key items.Mr Hooda hinted that the state government would also take more steps to control price rise in the state.
The Chief Minister said that the state was charging minimum 8.8 per cent (9.24 per cent, including surcharge) on diesel, which was the lowest VAT rate in the country. The Central Government, he said, had to increase the rates of petroleum products due to the hike in the global prices of oil. The state government had decided to waive off VAT in keeping with the directions of the Congress President, Mrs Sonia Gandhi, to minimize burden on the masses. Mr Hooda pointed out that the BJP-ruled states were charging maximum VAT on diesel which was 24.7 per cent in Gujarat; 23 per cent in Madhya Pradesh; and 22 per cent in Chattisgarh. The diesel rates in Haryana were also the lowest in the country, he added.
Mr Hooda announced that the rebate on LPG cylinders as given to the people of Haryana would continue. Since June 2008, the Haryana Government had waived off four per cent VAT on LPG cylinders. The rebate would continue and no VAT would be levied on LPG cylinders even though the minimum rate of VAT on LPG was five per cent, he added.