Lucknow: Amid mounting demand to reduce VAT on petrol to neutralise the recent hike, the Uttar Pradesh government on Tuesday said VAT rates on diesel and petrol have been fixed rationally.

In a written reply to the Assembly, the government said that the rate of VAT at 17.23 percent on diesel and 26.55 percent on petrol has been fixed in the state.

To the question whether the state has any plans to reduce VAT, the government said it has been fixed rationally in keeping with the financial requirements and limited resources of the state indicating that it was justified.

Union Finance Minister Pranab Mukherjee has already said that he would soon write to state chief ministers to consider cut in sales tax on petrol to partly neutralise the impact of the Rs 7.54 per litre hike in the price of the auto fuel.

Uttarakhand, Kerala and Delhi have already announced cut in value added tax (VAT) on petrol.


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