The Delhi government reduced the Value-Added Tax on diesel by almost half on Thursday, which will result in a relief of Rs 8.36 a litre to consumers, saying the move will help the city's economy recover from the pressures of the coronavirus pandemic.
Chief Minister Arvind Kejriwal announced the reduction in VAT from 30 percent to 16.75 percent during a virtual press briefing and said traders and industrialists had demanded it.
The diesel price will now come down from Rs 82 to Rs 73.64 in Delhi, he added.
In May, Delhi government had increased VAT on petrol and diesel to 30 percent each, leading to an increase of Rs 1.67 and Rs 7.10 in the prices of the two fuels, respectively.
Kejriwal said reviving the economy is a serious challenge but it will be achieved together with the two crore people of Delhi, like they have helped in bringing the virus under control.
"The traders, industrialists and people had demanded that VAT on diesel be lowered as it was causing distress to them. I think this decision will help in giving a push to Delhi's economy. I appeal the traders, shopkeepers and industrialists to open their establishments but maintain precaution. Together we will bring Delhi's economy back on tracks," he said.
The chief minister said he will virtually interact with industrialists and traders in the coming days to understand their problems so that additional efforts are made to solve them.
The Delhi government in the past one week took several steps, like allowing street vendors and hawkers and launched a jobs portal, to revive the economy of the city, he said.
The jobs portal has received a massive response and 7,577 employers have registered on it to offer over two lakh jobs, Kejriwal said. More than 3.20 lakh job-seekers have also registered on the portal, he added.
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