Chandigarh has announced a cut Rs 7 per litre in value-added tax. (Representational)
With the Centre slashing excise duty on petrol and diesel, the Chandigarh Administration has also announced a reduction of Rs 7 per litre in value-added tax (VAT) on the fuels making them cheaper in the Union Territory.
"After the Centre cut levy on petrol and diesel, Chandigarh Administration has reduced VAT by Rs 7 on petrol and diesel with effect from midnight of November 4," an official statement said.
As per the notification issued by the Department of Excise and Taxation, Union Territory Chandigarh, on Thursday, the Value Added Tax percentage on petrol has been reduced from 22.45 per cent to 15.24 per cent and on diesel from 14.02 per cent to 6.66 per cent.
The Haryana government had also announced a reduction in Value Added Tax on the fuels on Thursday, making them cheaper in the BJP-JJP-ruled state by Rs 12 per litre.
On Wednesday, the central government 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 Value Added Tax on petrol and diesel to give relief to consumers.
Meanwhile, Shiromani Akali Dal President Sukhbir Singh Badal has urged the Charanjit Singh Channi-led Congress government to reduce Value Added Tax 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!" Mr Badal tweeted.