ST on diesel may not be hiked in Delhi
Sales tax on diesel is not likely to be increased to 20 per cent in Delhi as VAT panel may exempt the fuel from the common minimum tax rate, which it plans to implement on items across all states by September.
All states were supposed to impose at least 20 per cent sales tax on diesel, but after resistance from Haryana, Punjab and Himachal Pradesh to raise the tax to that level, Empowered Committee had in April allowed Delhi also to lower the levy to 12.5 per cent from 20 per cent.
Earlier, Delhi had imposed 20 per cent tax on diesel as per common minimum floor rate principle, but its diesel trade started shifting to Haryana w continue if some states continue to oppose the minimum floor rate of 20 per cent, Empowered Committee Secretary Ramesh Chandra told PTI.
Delhi tax administration also said it could raise the tax on diesel to 20 per cent only if Haryana agrees to do so.
More: sify.com