The decision to make kerosene VAT-free would make it cheaper by 70 paise per litre.
Now, the consumer in Haryana would have to pay Rs. 14 per litre instead of Rs. 14.70 per litre.
The VAT on LPG having already been waived in 2008, the waiver on kerosene today makes Haryana a VAT-free state for there two key items.
Mr. Hooda hinted that the state government would also take more steps to control price rise in the state.
The Chief Minister said here that the state was charging minimum 8.8 per cent (9.24 percent, including surcharge) on diesel, which was the lowest VAT rate in the country.
On the decision of the central government hiking prices of kerosene, diesel and LPG, he said, they had to increase the rates of petroleum products due to the hike in the global prices of oil.
The state government had decided to waive off VAT in keeping with the directions of the Congress President Sonia Gandhi, to minimise burden on the masses, he said.
Mr. Hooda said BJP-ruled states were charging maximum VAT on diesel which was 24.7 per cent in Gujarat; 23 per cent in Madhya Pradesh and 22 percent in Chattisgarh.
The diesel rates in Haryana were also the lowest in the country, he added.
Hooda announced that the rebate on LPG cylinders as given to the people of Haryana would continue. Since June, 2008, the Haryana Government had waived off 4 per cent VAT on LPG cylinders.
The rebate would continue and no VAT would be levied on LPG cylinders even though the minimum rate of VAT on LPG was 5 per cent, he added.
Chandigarh: Haryana Chief Minister Bhupinder Singh Hooda on Sunday announced the decision of the state government to waive off the 5 percent value added tax (VAT) on kerosene.
First Published: Sunday, June 26, 2011, 17:30