New Delhi: Delhi Deputy Chief Minister Manish Sisodia on Wednesday defended Delhi government's move to increase VAT on petrol and diesel prices, stating tax rates were being rationalised in the national capital and its neighbouring states.
Sisodia took to Twitter and wrote, “Tax rates on petrol-diesel are being rationalised in Delhi, Haryana, Punjab, Himachal Pradesh, Chhattisgarh and Uttar Pradesh under unified tax policy. First time in North India.”
Tax rates on Petrol-Diesel r being rationalised in Delhi, Haryana, Punjab, HP, C-garh & UP under unified tax policy. 1st time in North India
— Manish Sisodia (@msisodia) July 15, 2015
Also, Aam Aadmi Party's spokesperson Raghav Chadha said that the hike was done to avoid geographical tax arbitrage and trade malpractices.
“This was to avoid geographical tax arbitrage and trade malpractices due to differential price rates in neighboring states,” he was quoted as saying by ANI.
The petrol price in Delhi has been increase by Rs 2.78 and diesel price by Rs 1.83 per litre.
The raise, effective from midnight, is the first hike in Value Added Tax effected by Aam Aadmi Party government since capturing power in Delhi.
"The VAT rate on petrol has been increased from 20% to 25% and on diesel from 12.5% to 16.6%, thereby resulting increase in the price of petrol by Rs 2.78 per litre (approx.) and in the price of diesel Rs 1.83 per litre," government said in a statement.
The retail price of petrol in Delhi will be now be Rs 69.43 per litre and diesel will sell at Rs 52.07 per litre.
(With Agency inputs)