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No increase in VAT on fuels since 2016, says Delhi government
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No increase in VAT on fuels since 2016, says Delhi government
Jun 9, 2018 9:05 AM

The Delhi government informed the state Assembly on Saturday that it has not increased the value added tax (VAT) on petrol and diesel since January 2016 dismissing allegations made by the opposition.

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"After January 19, 2016, there has been no increase in the VAT on petrol and diesel. However, on May 7, 2016, the government had reduced the VAT on diesel from 18 percent to 16.75 percent," Deputy Chief Minister Manish Sisodia informed the Assembly in a written reply during the ongoing session.

The Leader of Opposition Vijender Gupta had been accusing the Aam Aadmi Party (AAP) government for increasing the value-added tax on fuel during their tenure.

Gupta also raised the same issue in a question during the session that the VAT on petrol was up by 12 percent and that on diesel was up by 10.5 percent.

The government informed the House that in the last three years, the VAT on these fuels was only increased twice, once in July 2015 and the next in January 2016, to bring uniformity in the tax rates with the neighbouring states.

In 2015, the VAT rate on petrol was increased from 20 percent to 25 percent and on diesel from 12.5 percent to 16.6 percent.

In 2016, the VAT on petrol and diesel was increased by 2 percent and 1.4 percent respectively to move towards uniformity in tax rates and develop a common market to boost trade in the north Indian region, Sisodia added.

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