Chandigarh, Nov 7 (UNI) Punjab government announced reduction in VAT on petrol and diesel by Rs 10 and Rs 5 per litre respectively, which will be effective from midnight on Sunday.

Punjab Chief Minister Charanjit Singh Channi, while addressing the media after the Cabinet meeting held under his chairmanship, said that after the decision of the Central Government, the state government has decided to give relief to the people.

At the same time, he said the Central government has cut excise duty on petrol and diesel, of which 42 per cent is shared by the states.

He further said that with the Centre's decision of slashing excise duty on petrol and diesel, there will be loss of revenue to the states. Channi opined that instead of reducing the excise duty, the Central government should reduce the surcharge or duty, which has increased from time to time. He also claimed that petrol prices in Punjab would be the cheapest in North India.

On this occasion, State Finance Minister Manpreet Singh Badal said the reduction in petrol and diesel prices should be considered as Diwali gift from the government to the people.
Channi said the Central government has no control over oil prices. During the present regime, the prices of petrol and diesel have increased unreasonably and people of the country have been allegedly looted. Earlier, the oil prices were allowed to increase by Rs 30 and then a relief of Rs 5-10 per litre was provided. He added that prices of petrol and diesel have never been decreased so much in the state till date.
He said in the last few years, so much burden has been put on the people of the state in the form of taxes that it has become unbearable. The government is now trying to lighten this burden. Electricity rates of Rs 3 per unit have been reduced, added Channi.
He hinted of announcing decisions related to providing relief and gifts to the public in the special session of the state Assembly, to be held on Monday.
Due to the reduction in taxes on petrol and diesel by both the Central and state governments, the price of oil is likely to come down by about Rs 15.

UNI BAV RJ