LUDHIANA: Punjab Finance and Taxation Minister Manpreet Singh Badal said on Friday, November 5, 2021, that the state government will take a decision on reducing the Value Added Tax (VAT) on petrol and diesel in the next cabinet meeting scheduled on Saturday.
Speaking to the media at a state-level function here, Badal said the Punjab government is also keen on slashing the prices of petrol and diesel to give more relief to the people but the final decision will be taken in the upcoming cabinet meeting.
The state finance minister said the Union government should have reduced the excise duty further on petrol and diesel.
On Wednesday, the central government had announced a cut in the excise duty on petrol and diesel by Rs 5 and Rs 10, respectively, bringing down their retail rates from record highs.
Reducing the excise duty, the Union government had urged states to commensurately reduce VAT on petrol and diesel to give relief to consumers.
Manpreet Singh Badal said the state government has to run several social welfare schemes for the people and take care of every sector, including education, health, electricity, police, and infrastructure development.
He said the Union government charges more taxes on petrol and diesel in comparison with the states but added that the Punjab government is very much keen to reduce the fuel prices.
Earlier, Shiromani Akali Dal president Sukhbir Singh Badal had urged the Congress government to reduce VAT rate on petrol and diesel to provide relief to the consumers.
"High fuel prices have been eating into the Pbis (Punjabis) pocket. Centre's late reduction of rates is a half measure! On behalf of SAD & Punjab, I demand that CM @CharanjitChanni take note from other states & reduce sky high petrol and diesel prices by Rs 10. Punjab has suffered enough!" he had tweeted.