"The state government is seriously contemplating to slash the rate of VAT on petrol to some extent", Chief Minister Parkash Singh Badal said speaking on the sidelines of a function in Rakhra in Patiala district, an official release said.

The state government had ignored demands from the public and the petroleum dealers association during its around four years and nine months rule even as taxes, including VAT, amount to a whopping 32.25 per cent in Punjab as compared with betweem 20.50 per cent and 24 per cent in neighbouring states of Haryana, Himachal Pradesh and Chandigarh.

The SAD-BJP government levies the highest rate of tax on petrol in northern region, making it costlier among the region's states.

Source: Economic Times, India,  dated 12/11/2011