The Tamil Nadu Government notified the reduction in Value Added Tax (VAT) on Petrol and Diesel.
The finance minister, Palanivel Thiaga Rajan said “Tamil Nadu Government has announced that tax on petrol will be reduced by Rs.3 per litre. This will annually cost Rs.1,160 crore to the State government.”
The State Government while presenting in the State Assembly the state’s first paperless (revised) e-budget has notified the reduction in VAT on Petrol from 34% to 15% and in the case of Diesel, the tax has been reduced from 25% to 11%.
The new petrol prices will come into effect from August 14, 2021.
The price of auto fuel in India depends on international crude oil prices, rupee-dollar exchange rate. Moreover, the central government and states levy various taxes namely excise duty and Value Added Tax (VAT) on petrol and diesel. Dealer’s commission and freight charges are also added to the fuel price.
Petrol costs over Rs 100 per litre in at least 19 states and Union Territories in the country namely Maharashtra, Delhi, West Bengal, Tamil Nadu, Andhra Pradesh, Telangana, Rajasthan, Madhya Pradesh, Karnataka, Uttar Pradesh, Haryana, Jammu and Kashmir, Odisha, Ladakh, Bihar, Kerala, Punjab, Sikkim and Nagaland.
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