NT NETWORK
PANAJI
The government on Wednesday lowered VAT on petrol to 15 per cent from 20 per cent. Petrol will now cost Rs 59.38 per litre in Goa after the Centre announced a hike in the price of the fuel by Rs 2.58 per litre.
The new VAT and the petrol rates came into force from Wednesday midnight, said sources in the commercial taxes department.
This is the second reduction in VAT in a short span of 15 days after the earlier reduction by two per cent on May 17.
Petrol rate in Goa was Rs 61.80 per litre on Wednesday after oil companies raised petrol and diesel price by Rs 2.58 per litre and Rs 2.26 per litre respectively on May 31.
It crossed the benchmark rate of Rs 60.
Chief Minister Laxmikant Parsekar in his 2016-17 budget speech had promised that the government will not allow petrol to exceed Rs 60 per litre in the state.
In 2012, after the BJP government came to power VAT on petrol was abolished and the price slashed by Rs 11 per litre. However, the government subsequently rolled back the abolition gradually and raised VAT in each budget.
In the latest budget VAT on petrol was raised to Rs 22 per litre with the promise that it will be lowered to prevent the price crossing Rs 60 per litre.
The VAT on diesel in Goa remains unchanged at 22 per cent and the rate is Rs 56.06 per litre.
Along with petrol hike, a series of indirect taxes have kicked in from June 1 that will make eating out, telephone bill and travel costly. The Krishi Kalyan cess of 0.5 per cent and the Swachh Bharat cess of 0.5 per cent respectively come into effect from Wednesday.
Travel by first and other AC classes in trains is set to become costlier from Wednesday with the Railways imposing 0.5 per cent Krishi Kalyan cess on 30 per cent of the total fare.