Maharashtra, Gujarat, Himachal Cut VAT, Fuel To Get Cheaper

MUMBAI:  Maharashtra, Gujarat and Himachal Pradesh today announced cuts in Value Added Tax (VAT) on petrol and diesel, effective from midnight, to bring down fuel prices in the three states.

While BJP-ruled Maharashtra and Gujarat announced a 4 per cent VAT cut, the Congress-ruled Himachal Pradesh cut VAT by 1 per cent.

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.

The move follows a communication from Finance Minister Arun Jaitley to all states to consider reducing state-level taxes on petrol and diesel products.

Mumbai Petroleum Dealers Association President Ravi Shinde said the current VAT in the state was around 26 per cent on petrol and 21 per cent on diesel, plus different cess totalling Rs. 9 per litre.

This pushed up prices of petrol and diesel by nearly 50 per cent for every litre in the state.

“Our demand for reduction in cess on petrol and diesel products by the state government was rejected and we were informed that it is utilised to repay farm loans waiver package announced in June,” Mr Daruwala told IANS.

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