Haryana Chief Minister Bhupinder Singh Hooda on 26 June 2011 announced the decision of the state government to waive off the 5 per cent value added tax (VAT) on kerosene. The state government’s decision will make kerosene cheaper by 70 paise per litre. The consumer in Haryana would have to pay Rs. 14 per litre instead of Rs. 14.70 per litre.
The state government had decided to waive off VAT in keeping with the directions of the Congress President Sonia Gandhi, to minimise burden on the masses.
The 4 per cent VAT on LPG cylinders was waived back in 2008. The rebate would continue and no VAT would be levied on LPG cylinders even though the minimum rate of VAT on LPG was 5 per cent. The waiver of VAT on kerosene thus made Haryana a VAT-free state for the two key items.
The state government charge minimum 8.8 per cent (9.24 per cent, including surcharge) on diesel, the lowest VAT rate in the country.
Haryana CM Hooda observed that BJP-ruled states were charging maximum VAT on diesel which was 24.7 per cent in Gujarat, 23 per cent in Madhya Pradesh and 22 per cent in Chattisgarh.
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