By Franklin R. Satyapalan
Consumers will get a fuel price reduction bonus from next week with prices to come down more than previously announced - diesel to come down by Rs.3 per litre, petrol by Rs.7 and kerosene by 80 cents, Finance Minister K.N. Choksy said yesterday.

"These reductions will be higher than those originally announced,’’ he said. "This is possible because of international petroleum prices going down.’’

The government had earlier announced a Rs.2.50 per litre price reduction for diesel and Rs.6 reduction for petrol.

The minister said that the government was passing the benefit of world oil price reductions to the consumer. The authorities are on record saying that prices here will be linked to international prices with consumers getting the benefit of global reductions and having carry increases.

Choksy also said that the Value Added Tax (VAT) bill will be debated in parliament on July 24 and 25 and will come into force on August 1 as originally intended.

"The Supreme Court has determined that this bill is not unconstitutional subject to one amendment proposed by the Attorney-General," he said.

The minister said that the 6.5% National Security Levy which previously applied to consumer goods like pharmaceuticals, rice, flour, coconut and infant powdered milk will not be subject to VAT as he recently announced.

He expected the prices of all consumer goods to come down by at least 8% with transport cost too going down due to lower fuel prices.