As the indefinite strike by commercial vehicles entered the fifth day today, the Meghalaya government has decided to bring down the State tax on petrol and diesel in the State by Rs 2 per litre.
The reduced rate of the auto fuel will come into effect from tomorrow.
The decision was taken at a video-conference meeting held between Chief Minister Conrad Sangma, ministers, Chief Secretary M S Rao and officers of taxation and transport departments.
Briefing media persons after the meeting, Deputy Chief Minister Prestone Tynsong said that the official notification on the matter will come out tomorrow.
“The government has decided that the rate for both petrol and diesel will be reduced by Rs 2 and will come into effect from tomorrow. The government therefore appeals to the Joint Action Committee of Commercial Vehicles and all stakeholders to withdraw their strike for the benefit of the people of the State,” Tynsong said.
Meanwhile, in a press release issued today, the Commissioner and Secretary, Excise, Registration and Taxation Department said that the government has decided to offer a rebate of Rs 2 per litre from the tax component of the retail sale price of petrol and diesel effective from tomorrow “in order to maintain the price differential with neighbouring Assam and to offer relief to the consumers within the State”.
Petrol price in Meghalaya today is Rs 90.75 per litre while that of diesel is Rs 83.49 per litre. With the latest reduction of VAT by the State government, the price will come down by Rs 2 in both fuels from the prevailing rate.
It may be mentioned that on April 23, 2020, the Conrad Sangma government increased the Value Added Tax (VAT) on petrol and diesel.
The rate of VT for petrol is 31 per cent or Rs 17.6 per litre and 22.5 per cent for diesel or Rs 12.5 per litre.
Further, 2 per cent sales tax surcharge is also levied on both petrol and diesel.
Petrol and diesel prices in India have risen sharply in the past one month as oil companies balanced the hike in fuel prices with the increase in crude oil prices.
Central excise duty makes up for 39 per cent of petrol and 42.5 per cent of diesel. After considering local sales tax or VAT, the total tax incidence in the price is about two-third of the retail rate.
If the Central government and the states reduce their taxes by 50 per cent then the prices of petrol and diesel in each state can be reduced up to Rs 20 per litre.
The rates of VAT on diesel and petrol vary from state to state, that is the reason that the prices of diesel and petrol are different in every state of India.
