SHIMLA: The Himachal Pradesh government announced on Thursday that Value Added Tax (VAT) on petrol would be reduced by Rs 2 per litre and Rs 4.60 on diesel.
Chief Minister Jai Ram Thakur said petrol would be cheaper by Rs 12 per litre whereas diesel would also be cheaper by Rs 17 per litre in the state.
The Centre on Wednesday had reduced the excise duty on petrol by Rs 5 and that on diesel by Rs 10.
In a notification issued here on Thursday, the Himachal Pradesh government has reduced the tax on petrol from 25 per cent or Rs 15.50 per litre to 17.5 per cent or Rs 13.50 per litre.
Similarly, it reduced the tax on diesel from 14 per cent or Rs 9 per litre to six percent or Rs 4.40 per litre.
Additional Chief Secretary (State Taxes and Excise) Jagdish Chander Sharma said the order would come into force from Thursday midnight.
The chief minister thanked the Union government and Prime Minister Narendra Modi for reducing the excise duty on petrol and diesel.
"This decision of the Union government provided much needed relief to the people of the country," he added.