Lucknow: Chances of petrol prices being slashed in Uttar Pradesh have dimmed as the state government has declined to reduce its Value Added Tax (VAT).
“The tax system in the state was structured keeping in mind its financial needs, and hence it need not be disturbed,” Chief Minister Akhilesh Yadav told the State Assembly on Tuesday.
Legislators had demanded the state government follow the Congress-ruled states like Kerala, Uttarakhand and Delhi, which have reduced the VAT, bringing down the petrol prices.
There is 17.23 per cent VAT on diesel and 26.55 per cent VAT on petrol in Uttar Pradesh, reports IANS.
The Congress said the hike in petrol price was forced by the volatile situation in international oil market and that the state governments could cut the VAT to bring down the price.