On Monday, Chief Minister Manohar Parrikar proposed a cut in Value Added Tax (VAT) on prices of the fuel in Goa, which means the state will enjoy a staggering price drop of Rs 11 per litre for petrol.
Cheapest petrol in the country at Rs 55 per litre, was one of the main promises of the Bharatiya Janata party (BJP) in its election manifesto for the March 3 Assembly polls. Currently, the petrol price in Goa is Rs 65 per litre.
To achieve this, Parrikar proposed 0.1 percent Value Added Tax (VAT) component to be levied by the state government for sake of record.
“I propose to reduce petrol price by Rs 11 per litre to save commuters from inflation,” Parrikar said, presenting the first budget plan of his party after coming to power in the state of Goa.
Moreover, the budget also proposes to stabilize domestic gas cylinder prices and setting a target of 15 percent GDP growth for the next fiscal year.
With the success of this plan, Goa will enjoy the cheapest petrol prices in the country and Rs 16 cheaper than the prices in Maharashtra. This will come as a major relief to the daily commuters in Goa, as a larger section of the community in the state uses two-wheelers.
Parrikar also said that in order to lure aviation companies to refuel at the Goa airport, VAT on aviation fuel would be reduced from 22 percent to 12 percent.
Currently in the state, the VAT on petrol is 20 percent and that on diesel is 19 percent. The experts suggest that with the revived VAT figures, the state could suffer an additional revenue burden of the figure Rs 100 crore.