The Haryana government has refused to follow its counterpart in Delhi and slash the VAT on petrol. The government claimed that the state already levies one of the lowest VATs in the country.
The decision not to change the VAT on petrol was taken in a cabinet meeting held in Chandigarh. Haryana levy 20 % VAT on petrol which is lower than other adjoining states including Punjab.
Speaking to TOI, excise minister Kiran Chowdhary said, "The VAT on petrol is lowest in Haryana and therefore there was no need to reduce it further. Even after the reduction of VAT on petrol in Delhi and some other places, the petrol cost in Haryana remains lower."
However, Chowdhary said that the VAT on hospital products has been brought down from 12.5 % to 4 %. These include products like operation tables, syringes, surgical lights and others which are manufactured in the state.
Calling the reduction a calculated move, she said: "The cabinet decided to reduce the VAT on hospital products because it will have twin benefits: first, it will boost the industry based in the state and also attract investors from other states. In addition to this, it will also help hospitals." The state has decided to reduce VAT on Bitumen Emulsion and Crumb Rubber Modified Bitumen (CRMB) from 12.5 per cent to five per cent.
"This step has been taken because several road construction projects are in the pipeline in the state. The reduction of the VAT will lead to an increased procurement of CRMB from the sate," said the minister.