A day after the central government slashed excise duty on fuel prices, Lieutenant Governor Manoj Sinha on Thursday announced a further reduction in petrol and diesel prices by Rs 7 per litre.
“Hon’ble PM @narendramodi Ji has given a great Deepawali gift by announcing a reduction in excise duty on Petrol & Diesel. In addition, the J & K admin has decided to reduce additional Rs 7 on Petrol & Diesel, thereby reducing the Petrol price by Rs 12/litre & Diesel by Rs 17/litre in UT from today,” office of Lieutenant Governor tweeted.
In line with LG’s announcement, the Finance Department issued an order to formalise the reduction of petroleum prices.
The finance department has revised the tax rates and cess to bring down the fuel prices in J&K which was a long pending demand of local residents.
As per the notification issued by the Financial Commissioner of Finance Department, Atal Dulloo, the tax has been levied by 24 per cent for Petrol which is Rs 4.5 per litre while the cess has been decreased by Rs 2 per litre for petrol.
Similarly, the tax on diesel has been levied by 16 per cent which is Rs 6.5 per litre while the cess has been reduced by Re 1 per litre.
As per the notification, the tax rate has been revised. ” The tax rate has been levied in the exercise of the powers conferred by section 3 and 3 A of the Jammu and Kashmir Motor Spirit and Diesel Oil (Taxation of Sales) Act, Samvat 2005.”
“This notification shall come into force w.e.f November 4 of 2021,” it reads.
With the reduction in prices, petrol prices will hover above 100 a litre, while diesel price which for the first time was above Rs 100 a litre has come down to mid Rs 90s level.
The central government had on Wednesday cut excise duty on petrol by Rs 5 per litre and that on diesel by Rs 10 a litre to give reprieve to consumers battered by record-high retail fuel prices. Since states charge local sales tax or VAT not just on the base price but also on the excise duty levied by the Centre, the total incidence of price reduction is higher. The reduction was larger in states with higher VAT.