Meghalaya Govt reduces VAT on petrol and diesel by Rs 5.20 per litre

Syllad | The Rising MeghalayaNovember 5, 2021

In a big relief, the Meghalaya Democratic Alliance government has announced its decision to further reduce the tax on petrol and diesel by Rs 5.20 with effect from Friday midnight.

The decision was taken by the cabinet chaired by Chief Minister Conrad K Sangma.

This was in line with the Government of India’s decision of reducing Central Excise Duty on petrol & diesel by Rs 5 and Rs 10 respectively from November 4.

Addressing media persons after the meeting, Deputy Chief Minister Prestone Tynsong said, “In line with the advice of the Government of India, the state government has taken a decision that further reduction on the prices of petrol & diesel has to be implemented immediately from midnight.”

Tynsong has also reminded that the state government had earlier reduced the value added tax (VAT) to 20 percent on petrol and 12 percent on diesel.

“With today’s decision, we have further reduced the tax percentage on petrol from 20 percent to 13.5 percent per litre and for diesel from 12 percent to 5 percent per litre. The amount if converted into hard cash comes to Rs 5.20 per litre for both petrol & diesel,” he said.

Stating that the prices of petrol and diesel in the state is the lowest in the country, the deputy CM said as of today the price of petrol in Guwahati, Assam is Rs 94.58 per litre after reduction while in Meghalaya’s Byrnihat it is Rs 92.38 per litre and in Shillong Rs 93.91 per litre.

Similarly, the price of diesel in Guwahati is at Rs 81.29 per litre while in Byrnihat at Rs 79.41 per litre and Shillong at Rs 80.57 per litre.

“Therefore, the total relief on petrol is Rs 10.95 per litre in Byrnihat and Rs 11.08 per litre in Shillong while for diesel, the total relief is Rs 16.67 per litre in the entire state of Meghalaya,” he said.

When asked, Tynsong said that the state will incur a revenue loss of about Rs 100 crore for the next five months from November to March 31, 2022.