The Government is seriously considering to bring down its annual target of VAT collections by Rs3,000 crore as it fears that it would not be possible for it to meet the set target of Rs24,000 crore.
The Government had been making serious efforts to increase the VAT collections. Despite increase in VAT on diesel and petrol, the revenue collection has not been able to meet the target due to falling prices of fuel. On the basis of the decision taken in the meeting of Finance Ministers of Northern States for bringing uniformity in the tax rates, the Delhi Government on Monday rationalised the VAT rates for petrol and diesel.
In financial terms, this will result in a minimal upward revision in the cost of both these products, which will be less than Rupee one for both petrol and diesel i.e. 96 paise for petrol and 53 paise in case of diesel.