VAT on fuel
Source: The Sangai Express

Imphal, August 23 2021: Deputy Chief Minister Y Joykumar who also holds the Finance portfolio has apprised the House that the Government is considering to deduct the Value Added Tax (VAT) levied on petrol and diesel.

Replying to a call attention motion raised by MLA AK Mirabai, the Deputy CM said that the VAT levied on petrol and diesel were hiked out of necessity to meet the cost of Covid management.

Informing that VAT is the major source of revenue generation for the State, Y Joykumar maintained that the Government is considering to deduct the VAT nonetheless.

After price revision, the price of petrol and diesel will drop to Rs 102.99 and Rs 90.09 respectively, he added.

He further stated the price of petrol and diesel at Assam is Rs 97 and Rs 88.63 respectively while the fuel price at Meghalaya is Rs 101.23 (petrol) and Rs 88.20 (diesel).

Joykumar also clarified that the report that the State is losing revenue due to higher VAT in comparison to other States is baseless, adding that sale of fuel is dropping due to the Covid pandemic.

It is true that other States levy lesser VAT on fuel, but they have many sources to generate revenue, he continued.

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