Bengal cuts VAT on petrol, diesel by ₹1

We are doing it for the sake of people who are facing hardship despite our huge financial burden MAMATA BANERJEE,

West Bengal chief minister

KOLKATA: West Bengal chief minister Mamata Banerjee on Tuesday reduced the value added Tax (VAT) on petrol and diesel by ~1 per litre, joining Rajasthan and Andhra Pradesh, the two pollbound states that have already announced a cut in petro prices.

The announcement comes a day after the Congress called a countrywide shutdown to protest against the rising fuel prices.

Banerjee said she has asked the Centre to withdraw the cess on petroleum products.

“We are doing it for the sake of the people despite our huge financial burden. The common people are facing hardships. For now, we have decided to slash (the VAT) by ₹1 per litre of petrol and diesel. We also demand that the central government consider cutting down the cess on diesel and petrol,” the chief minister said.

According to a senior official in the state finance department, the reduced prices would be applica- ble from Tuesday midnight.

On Monday, petrol was priced at ₹83.16 in Bengal, of which state VAT was ₹11.99. The ₹1 reduction would be 8.34% of the VAT. For diesel (₹75.80 a litre), the VAT was ₹8.51. In this case, the reduction would be 11.75%.

“Rajasthan and Andhra Pradesh are heading for elections. I don’t have any polls here. Yet I am taking this step,” she said.

Bengal is repaying nearly ₹48,000-crore in loans to the Centre every year, she added. The burden is likely to reach ₹3.94 lakh crore by this year. The repayment obligation will stand at ~47,719 crore, which consumes more than 86% of its projected own tax revenue of ₹55,200 crore.