After Gujarat, Maharashtra also slashes Value-Added Tax on petrol and diesel
11 October, 2017, 00:33 | Author: Brenda Erickson
The net reduction in petrol and diesel prices will be around Rs 2.33 per litre and Rs 1.25 per litre respectively in Maharashtra, said All India Petrol Dealers Association spokesperson Ali Daruwala.
Hours after the Gujarat government announced the tax cut, Devendra Fadnavis government also came out with tax reduction on fuel.
Hours after two BJP ruled states cut down Value-Added Tax on petrol and diesel sale, Himachal Pradesh, a poll-bound Congress ruled state, also made a decision to give relief to the people.
The VAT on petrol and diesel would be cut by 1 percent to give relief to people, said chief minister Virbhadra Singh who presided over the cabinet meeting today.
The announcement was made by state's Chief Minister Vijay Rupani. As a result of the excise duty reduction, petrol price were cut by Rs 2.5 per litre and diesel by Rs 2.25. "Now it is the turn of states to reduce VAT", Oil Minister Dharmendra Pradhan had remarked. "Just like excise Duty has been cut by the Centre keeping consumer interest in mind, states would also follow suit", he had said.
The prudent thing to do is to reduce expenditure of the State government for which guidelines have been issued to all the departments. "The base prices in Bihar are higher than those in neighbouring Jharkhand".
Mr Rupani said Gujarat has become the first state to respond to the Centre's appeal to cut taxes on petrol and diesel.
While Madhya Pradesh and Karnataka are still discussing the possibility of cutting taxes on fuel, non-BJP-ruled States of Kerala and Odisha have objected to the Centre's suggestion to lower VAT, terming it "unfavourable" to implement.
Excise duty on petrol was hiked by Rs 11.77 per litre and that on diesel by 13.47 a litre ever since Prime Minister Narendra Modi-led BJP government came to power in 2014. "If the Centre makes an alternative provision for income, we will have no problems in reducing Value-Added Tax", said Finance Minister Sashi Bhusan Behera.
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