NEW DELHI: Taking another step to revive the local economy, Delhi government on Thursday took the decision to cut back on tax on fuel. Chief Minister Arvind Kejriwal informed that VAT on diesel will be brought down to 16.75 per cent from 30 per cent.
Looking at the battered economy after the city came to a standstill after a series of lockdowns, the Kejriwal government is taking few steps to jumpstart the economy. This decision will substantially bring down the diesel prices in Delhi by Rs 8.36 per litre, which will prove beneficial.
City transporters have hailed the step saying this was a demand from them to the government. "Since the taxes were increased in Delhi transporters were not in favour of it, this step taken by the government will now help us a lot. The government will also see an increase in revenue because most of trucks will now get refueled in the city rather than looking for cheaper options in neighboring states," said Delhi Goods and Transport Organisation president Rajendra Kapoor.
Earlier, Delhi government increased the VAT on fuel prices in Delhi in order to make up for the lost revenue but as unlockdown started residents were going to neighboruing states of Haryana and Uttar Pradesh for cheaper fuel. Now after this step the diesel price in Delhi is lower of Rs 1-2 from these states.
"This is one of the several measures taken by our government to revive Delhi economy. I will be connecting to several trade and industry experts soon to further work out steps to take for the economy," said Kejriwal.