In an expectedly populist budget aimed at reclaiming Congress' support base for the Assembly elections post the ignominy of MCD polls, the Delhi government on Monday slashed sales tax on petrol by Rs 1.26, even as the consumers will have to pay an extra five percent of Value Added Tax (VAT) on Compressed Natural Gas (CNG).
Petrol in the Capital will now cost Rs 71.48 as the government has decided not to charge 20 per cent VAT on the hike-amount.
"We have reduced VAT to make petrol cheaper," Delhi Chief Minister Sheila Dikshit said presenting the budget for 2012-13 on Monday.
However, with the government proposing a fresh five per cent VAT on CNG, its price will see an increase from Rs 35.45 per kg.
"We did whatever we could. We could not do more due to budget constraints," Dikshit said.
Social sector has the highest allocation in the Rs 33,436 crore budget.
While tax collection was pegged at Rs 26,150 crore, the plan allocation was Rs 15,000 crore and the non-plan allocation Rs 18,268 crore.
Delhi is the fourth such state to cut taxes to make petrol cheaper after Goa, Uttarakhand and Kerala. (ANI)