Delhi govt refuses to reduce VAT on fuel prices

The Delhi government has refused to reduce value added tax (VAT) on the fuel price in the state, despite the Centre announcing a cut of Rs 2.50 per litre on both petrol and diesel prices.

Delhi Deputy Chief Minister Manish Sisodia said that state government is already running in loss and, therefore, cannot reduce the taxes.

"The state believed in the Centre over the implementation of the Goods and Services Tax (GST) implementation, with a hope that Prime Minister Narendra Modi would take care of states' interests. But, now when the Centre says it has hiked prices of petrol and diesel by Rs 10, but the profit is going to the Centre. However, if it reduces the rates by Rs 1.5, states are expected to cut down the price by Rs 2.5," he said.

On September 4, the Centre had slashed the price of petrol and diesel by Rs 2.50 per litre each and directed the state governments to implement the same.

Soon after the announcement, many states including Madhya Pradesh, Rajasthan, Uttar Pradesh, Chhattisgarh, Bihar and Maharashtra announced an additional concession on the fuel prices.