As fuel prices go down by Rs 2.50 per litre, JK slashes tax on fuel

New Delhi/Srinagar, : As central government on Thursday decided to effect a cut in the prices of petrol and diesel by Rs 2.50 per litre the Jammu & Kashmir Government slashed tax on fuel making petrol and diesel cheaper by Rs 5/- per litre from Thursday midnight.
Union Finance Minister Arun Jaitley announced at a press conference in Delhi that the cut will be effected through slashing of excise duty to the tune of Rs 1.50 per litre, while the oil marketing companies will absorb the impact to the tune of Re 1 per litre.
Soon after Jaitley announcement on cut in petrol and diesel prices by Rs 2.50/- per litre the Jammu & Kashmir Government in a significant decision which would give major relief to the people, slashes the Petrol and Diesel prices from mid night Thursday by Rs 5 per litre.
The State Government this evening announced matching cut of Rs 2.50 in the fuel prices commensurate with the price slash of Rs 2.50, announced by the Central Government taking the total succor to Rs 5 per litre in J&K.
The new fuel prices would be effective in the state from this midnight, an official spokesman said.
“In exercise of the powers conferred by Section-3 of J&K Motor Spirit and Diesel Oil (Taxation of Sale) Act-2005 and in supersession of SRO-230 dated: 21-07-2015 the Government hereby directs rate of tax on motor spirit and diesel shall be levied as sale price of motor spirit per litre plus 24% tax minus Rs 2.50 per litre for Motor Spirit and sale price of diesel per litre plus 16% tax minus Rs 2.50 per litre for diesel,” said a notification issued by Principal Secretary Finance, Navin K Choudhary.
He said this tax cut would result in cumulative slicing of petrol and diesel prices in the State by Rs 5 per litre as the Central Government has already announced Rs 2.50 per litre step-down in fuel prices including excise duty cut of Rs 1.5 per litre and Rs 1 per litre cut to be absorbed by the oil marketing companies.
Pertinently, Union Finance Minister, Arun Jaitley Thursday announced a cut of Rs 2.50 per litre in petrol and diesel prices. He urged the state governments to cut the VAT on fuel by an equal amount so that the fuel prices go down by Rs 5 per litre.