Two
of the Left-ruled States, West Bengal and Kerala, have
decided to reduce the sales tax on petrol and diesel, to
marginally reduce the impact of the price hike.
The
West Bengal Government today said it will reduce the sales
tax on petrol from 25 per cent to 20 per cent and on
diesel from 17 per cent to 12.5 per cent. The State has
said it will lose Rs 500 crore annually because of this.
It gets nearly Rs 2,000 crore as tax on petrol and diesel.
The State’s annual revenues from sales tax are about Rs
9,000 crore.
The
Kerala Cabinet, which met today, decided to reduce the
sales tax on petrol and diesel. The quantum of reduction
would be decided later.
The
Centre has asked all States to consider reducing sales
tax.
Source
: The HinduBusinessLine, India, dated
04/06/2008
