SHILLONG, Nov 5: The Meghalaya Cabinet Friday has decided to cut the value-added tax (VAT) on petrol and diesel by Rs 5.15 per litre compared to Rs 7 by most of the states across the country.
The government has been maintaining that Meghalaya has one of the lowest fuel prices in the country.
Deputy Chief Minister Prestone Tynsong told media persons after the Cabinet meeting that the reduction of VAT was in line with the Centre’s advice to bring down the prices of petrol and diesel.
The reduction means the government will now charge 13.45% as tax on petrol and 5% on diesel instead of 20% and 12% earlier respectively.
On Friday, the price of petrol in Guwahati was Rs 94.58 per litre. A litre in Byrnihat and Shillong will be Rs 93.28 and Rs 93.91 after the VAT reduction kicks in from midnight.
Similarly, the price of a litre of diesel will be ₹79.41 at Byrnihat and ₹80.57 in Shillong while the rate in Guwahati is ₹81.29.
According to Tynsong, the total relief to the consumers in Shillong works out to Rs 11.08 for petrol Rs 16.67 for diesel.
He said slashing VAT will result in a revenue loss of Rs 100 crore for the next five months.
The Deputy Chief Minister also said negotiations
are on with the Indian Oil Corporation to have a depot in Ri-Bhoi district. If this becomes a reality, people would be able to buy petrol and diesel at slightly lower prices without the landing charge that is currently included in the prices of petrol and diesel.
The Government is trying to find a feasible plot of land for the proposed depot of IOC in the state, he added.