Just a day after the central government announced reduction in excise duty on petrol and diesel, the Maharashtra government has reduced VAT on petrol by Rs. 2.08 and diesel at Rs. 1.44.
After 2 months long hike in petrol and diesel prices, Central government announced reduction of excise duty on petrol by ₹8 per liter and on diesel by ₹6 per liter, Union Finance Minister Nirmala Sitharaman also said that this will reduce petrol prices by Rs 9.5 per liter and diesel by Rs 7 per liter.
However, Maharashtra Chief Minister Uddhav Thackeray claimed that this reduction in excise duty was not enough, and more needed to be done. Following this, the Maharashtra government has announced that it will reduce Value Added Tax (VAT) on petrol by Rs 2.08 per liter and on diesel by Rs 1.44 per liter.
With this reduction, the price of petrol in Mumbai will be Rs 109.27 per liter, while that of diesel will be Rs 95.84 per litre. As a result of this reduction in VAT, the Maharashtra government is expected to lose around ₹80 crore on taxes from petrol and ₹125 crore on taxes from diesel every month.
The Government of Rajasthan and the Government of Kerala also announced a reduction in VAT, in Rajasthan, VAT on petrol was reduced by ₹ 2.48 per liter and on diesel by ₹ 1.16 per liter, while the Kerala government reduced VAT by ₹ 2.41 per liter. ₹ 1.36 for petrol and ₹ 1.36 for diesel.
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