“After January 19, 2016, there has been no increase in the VAT on petrol and diesel. However, on May 7, 2016, the government had reduced the VAT on diesel from 18 per cent to 16.75 per cent,” Deputy Chief Minister Manish Sisodia informed the Assembly in a written reply during the ongoing session.
The Leader of Opposition Vijender Gupta had been accusing the Aam Aadmi Party (AAP) government for increasing the value-added tax on fuel during their tenure.
Gupta also raised the same issue in a question during the session that the VAT on petrol was up by 12 per cent and that on diesel was up by 10.5 per cent.
The government informed the House that in the last three years, the VAT on these fuels was only increased twice — in July 2015 and in January 2016 — to bring uniformity in the tax rates with the neighbouring states.
In 2015, the VAT rate on petrol was increased from 20 per cent to 25 per cent and on diesel from 12.5 per cent to 16.6 per cent.
In 2016, the VAT on petrol and diesel was increased by 2 per cent and 1.4 per cent respectively to move towards uniformity in tax rates and develop a common market to boost trade in the north Indian region, Sisodia added.