Press Information Bureau
Government of India
Ministry of Petroleum & Natural Gas
18-November-2010 16:36 IST
Reduction in Tax Rate of Petroleum
The Central Government has requested the State Governments to rationalize their taxes on sensitive petroleum products; namely petrol, diesel, PDS kerosene and domestic LPG, and also shift from the ad-valorem tax rates to specific tax component, for providing relief to the consumers. The Central Government has not recommended any uniform tax rate to the State Governments. This was stated by the Minister of State for Petroleum & Natural Gas Shri Jitin Prasada in the Lok Sabha in a written reply today.

Shri Prasada further said that consequently, the Government of National Capital Territory of Delhi has reduced the VAT rate on Diesel from 20% to 12.5% w.e.f 20th July, 2010. The Government of Bihar has redued VAT on PDS Kerosene from 12.5% to 4% w.e.f. 12.7.2010. The Government of Goa has reduced VAT rates on petrol, diesel and domestic LPG w.e.f. 17th July, 2010 as follows:

ProductChanges Petrol Reduction in VAT rate from 22% to 20% Diesel Reduction in VAT rate from 20% to 19% Domestic LPGReduction in VAT rate from 4% to Nil.

The Minister also informed the house that the Government of West Bengal has reduced Sales Tax on PDS kerosene from 4% to nil w.e.f. 1.9.2010.