Gujarat Becomes First State To Cut VAT On Petrol And Diesel
With this move, Gujarat state government will suffer a loss of Rs 2,316 crore annually.
The Gujarat government has decided to reduce the value added tax (VAT) on petrol and diesel by 4 percent, state’s Chief Minister Vijay Rupani said.
The reduction in tax comes just before the Diwali festival, where the Assembly polls are due around the year-end.
After the central government’s instructions, Gujarat has decided to reduce VAT on petrol and diesel by 4 per cent from today mid-night.Vijay Rupani, Chief Minister, Gujarat
With this rate cut, the price of petrol will come down by Rs 2.93 and that of diesel by Rs 2.72 in the state, Rupani said. The effective price of petrol in Gujarat from midnight today will be Rs 66.53 per litre and that of diesel Rs 60.77 per litre, the chief minister added.
“We have taken this decision in the interest of people,” Rupani said.
The lowering of tax in the poll-bound Gujarat follows Union Finance Minister Arun Jaitley recently writing to all state governments nudging them to reduce taxes on petrol and diesel.
The Centre had recently brought down excise duty on petrol and diesel by Rs 2 per litre.