TN cuts 4% VAT on cooking gas

The Tamil Nadu government has decided to waive the four per cent Value Added Tax (VAT) on LPG with effect from July 1. The move is expected to cause a loss of Rs 120 crore annually to the state exchequer. In a statement on Tuesday, chief minister J Jayalalithaa said that the LPG price in the state at present is Rs 404.40, and the reduction in VAT would take it down to Rs 389.67. It may be noted that the prices of LPG were raised by Rs 50 per domestic-use cylinder last week. The price reduction follows the Union finance minister letter to all the chief ministers urging a reduction in levies on fuel and LPG.