By: Vijay Kumar Verma (Editor-ICN Group)
SHIMLA: In an important development, the Himachal cabinet of Ministers in a meeting held today has decided to cut GST on petrol and diesel by one percent. The decision has been taken to ease the increasing prices of the petroleum products thus impacting the pocket of “common people”.
The step is also bound to impact the VAT income of the state. The cabinet meeting was chaired by the Chief minister of Himachal Pradesh. It is pertinent to mention that the state is going to polls later this year. And the state government is out to appease the electoral by laying foundation stones and inaugurating projects.
BJP ruled Gujarat reduced VAT on petrol and diesel by 4%, becoming the first state to give relief to consumers from a recent surge in oil prices. The Maharashtra government, also led by BJP, followed suit without delay.
The state reduced VAT, resulting in a price reduction on petrol by Rs.2 and diesel by Rs.1.The central government cut excise duty on petrol and diesel by Rs2 last week, the first tax cut on fuel by the current government, to tame rising inflation.
