Chandigarh, Nov 7 (FN Agency) The Punjab government on Sunday announced reduction in Value Added Tax (VAT) on petrol and diesel by Rs 10 and Rs 5 per liter respectively. The new prices will be effective from midnight on November 7. Giving this information to media after the cabinet meeting here, Chief Minister Charanjit Singh Channi said that after the decision of the Central Government, the Punjab Government has decided to give relief to the people. At the same time, he said that the central government has cut excise duty on petrol and diesel, of which 42 per cent is shared by the states.
Due to this, there will be more loss of revenue to the states. He said that instead of reducing the excise duty, the central government should reduce the surcharge or duty which it has increased from time to time. He claimed that petrol in Punjab would be the cheapest in North India. On this occasion, Punjab Finance Minister Manpreet Singh Badal said that the reduction in the prices of petrol and diesel should be considered as a Diwali gift from the government to the people of the state.