Reducing VAT on fuel prices will cost Haryana Rs 1,920 crore

Within hours of the Centre announced a cut in prices of petrol and diesel, the Haryana government also announced on Thursday its decision to reduce VAT in the state.

Welcoming the decision of the Central government, Haryana Finance Minister Abhimanyu said the Haryana government has also decided to reduce Value Added Tax (VAT) on petrol and diesel by about Rs 2.50 per litre.

The revised rates would be effective from Thursday midnight, he told the media here.

Abhimanyu said after reduction, the revised rates of diesel in Haryana would be about Rs 71 per litre and petrol would be about Rs 79 per litre.

He said that this would cause an annual burden of Rs 1,920 crore on the state exchequer.