Himachal Abolishes VAT on Kerosene, Reduces it on Diesel

Shimla: To reduce the direct impact of the hike in prices petroleum products announced the by central government, the Himachal cabinet on Monday decided to do away with Value Added Tax on kerosene and reduced it from 14 to 9.7 percent for diesel.

Presided over by Chief Minister Prem Kumar Dhumal the cabinet in principal also approved to execute Inter-State Memorandum of Understanding and approved the draft for setting up of rope way between Sri Anandpur Sahib in Punjab to Naina Devi temple.

The cabinet approved continuation of the market intervention scheme for fruits for the year and approved the remunerative prices of mango.

For providing remunerative prices to the mango growers at the various terminal markets and protecting them from exploitation from middlemen, the cabinet decided on procurement of both seeding and grafter varieties of the fruit, said a cabinet spokesman.

Whereas the procurement price of seedling mango fruit was fixed at Rs 4.60 per Kg that of the better quality of grafted fruit was approved at Rs 5.25 per Kg, he said.

The government agencies of HPMC, HIMFED and HP Agro Industries Corp have been designated as the procurement agents and the scheme would remain operational from 1st July to 15th August. For a start 34 centers would be opened, which could be increased depending up on demand, said the spokesman.

For crop damages suffered by farmers during the construction phase of hydroelectric project, the cabinet approved policy guidelines to compensate them under relief and rehabilitation measures.

A decision was also taken to incorporate a female member in the State Review Board that after considering recommends pre-mature release of prisoners under mercy petitions received from convicts undergoing life or short term imprisonment.

The cabinet also approved opening and staffing of 7 ayurvedic health centers in the state.

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