- Delhi Chief Minister announces reduction in VAT to 16.75% from 30%
- Diesel to be cheaper by more than Rs 8 per litre in national capital
- VAT cut to help propel Delhi's economy, says Arvind Kejriwal
Here are 10 things to know:
The move on value added tax will help propel Delhi's economy, the Chief Minister said while announcing the rate cut through a virtual press briefing.
Reviving Delhi's economy is a serious challenge, but will be achieved with the cooperation of people, Mr Kejriwal said. The Chief Minister said traders and industrialists had demanded a cut in VAT.
The price of diesel will come down to Rs 73.64 a litre with the reduction in VAT, he said. The decision was taken in a meeting of the Delhi Cabinet chaired by the chief minister.
With effect from 6 am on Thursday, the price of diesel was at Rs 81.94 per litre in Delhi, and that of petrol at Rs 80.43 per litre.
The gap between petrol and diesel rates has been increasing in the metros over past few days, with diesel remaining costlier than petrol in the national capital.
Petrol and diesel prices are determined broadly by crude oil and forex rates, and vary in different parts of the country due to the incidence of VAT or value added tax.
The retail fuel prices - the price that the consumer pays for fuel in different parts of the country - are calculated by adding excise duty, dealer commission and VAT on the rate applicable to dealers
State-run Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum review the prices on a daily basis, and implement any revisions with effect from 6 am. The three account for the majority of fuel stations in the country.
A crash in travel demand due to the spread of the coronavirus pandemic has hurt oil markets. Currently, global crude oil prices hover around the $44 per barrel mark.
Though Brent crude futures - the global benchmark for oil rates - have recovered from a 21-year low of $15.98 per barrel registered in April, they are still down 33 per cent so far this year.
Delhi Cabinet has decided to reduce VAT on diesel from 30% to 16.75%. This will reduce price if diesel in Delhi from Rs 82 to Rs 73.64 i.e. by Rs 8.36 per litre | LIVE https://t.co/UDKzuSQJI9— Arvind Kejriwal (@ArvindKejriwal) July 30, 2020