Assam reduces petrol, diesel VAT by Rs 2.50
Sarma also assured that despite projected revenue loss of Rs 400 crore, all the developmental activities would continue at the same pace.
Guwahati: A day after allowing private bus operators to hike fares by at least 30 per cent, Assam government on Thursday announced to reduce the VAT on petrol and diesel by Rs 2.50 per litre.
This came soon after Union finance minister Arun Jaitley announced a cut of Rs 2.50 per litre on petrol and diesel prices with immediate effect.
Following the appeal by Mr Jaitley to the states to match the centre’s effort by reducing value-added tax or VAT by Rs 2.50 so that the total benefit to citizens is at least Rs 5, Assam finance minister Himanta Biswa Sarma announced on his official account of twitter that Assam government has also decided to reduce Rs 2.50 on both petrol and diesel per litre.
Mr Sarma said, “I would like to compliment Assam chief minister Sarbananda Sonowal for taking this bold step of reducing the VAT on petrol and diesel.”
Mr Sarma also assured that despite projected revenue loss of Rs 400 crore, all the developmental activities would continue at the same pace.
Though, state government was silent on allowing the private bus operators to hike the fares by 30 per cent on Wednesday in the wake of increasing fuel price hike.
State transport minister Chandra Mohan Patowary on Wednesday announced that bus fares in the state have not been increased in the last six years. “The bus owners may increase the fares by at least 30 per cent, they have not touched the fares since 2012. In all these years, the cost of spare parts have increased by 68 per cent, cost of insurance has gone up by 45 per cent and salary component of the drivers and conductors have seen a rise by 54 per cent. In such a situation, it has become difficult for bus owners to survive.”