Total tax on petrol down to 50%, diesel to 40% after duty cuts

The total incidence of taxes on petrol has come down to 50 per cent and that on diesel to 40 per cent following a reduction in excise duty by the Central Government, and by a slightly higher proportion in States that have also cut local sales tax or VAT on the fuel.

Incidentally, the Congress-led Government in Punjab on Sunday announced a reduction in Value Added Tax (VAT) on petrol and diesel, making them cheaper by `10 and `5 per litre respectively in the State. The new rates will be effective from midnight. Currently, petrol and diesel rates in Punjab are `106.20 and `89.83 per litre respectively.