VAT

K Annamalai, BJP's Tamil Nadu unit chief, questioned why DMK kept the state VAT higher than the excise duty levied by central government. He urges DMK administration to reduce petrol and diesel costs by Rs 2 and Rs 4 per litre, respectively. According to him, they should also provide a Rs 100 subsidy on cooking gas. Other states, excluding Tamil Nadu, decreased their fuel rates after Centre reduced Excise Duty.  

The Delhi Government reduced VAT from 30% (Rs 23.99) to 19.4 % (Rs 15.25 ), resulting reduction in petrol prices. The step was a relief to Delhi citizens, who will get 1 litre petrol for Rs 95.50 from the previous Rs 103.97, reduced by Rs 8. Reportedly, fuels prices may go down further as the international crude prices have been reduced by over 10% in the last few days. 

As a measure to eradicate poverty, the United Kingdom government has scrapped Value Added Tax (VAT) on sanitary products from January 1, 2021. Moreover, the government has planned to provide free sanitary products in schools, colleges, and hospitals. The rule came as the Brexit transition period ended on December 31, 2020, relieving the UK to avoid European Union’s 5% VAT directive on sanitary products.