With the Centre slashing excise duty on petrol and diesel, the Chandigarh Administration has also announced a reduction of ₹ 7 per litre in value-added tax (VAT) on the fuels making them cheaper in the Union Territory.
“After the Centre cut levy on petrol and diesel, Chandigarh Administration has reduced VAT by ₹ 7 on petrol and diesel with effect from midnight of November 4,” an official statement said.
As per the notification issued by the Department of Excise and Taxation, Union Territory Chandigarh, on Thursday, the Value Added Tax percentage on petrol has been reduced from 22.45 per cent to 15.24 per cent and on diesel from 14.02 per cent to 6.66 per cent.
The Haryana government had also announced a reduction in Value Added Tax on the fuels on Thursday, making them cheaper in the BJP-JJP-ruled state by ₹ 12 per litre.
On Wednesday, the central government announced a cut in the excise duty on petrol and diesel by ₹ 5 and ₹ 10, respectively, bringing down their retail rates from record highs.