The Maharashtra government led by Uddhav Thackeray reduced VAT on petrol by Rs 2.08 and diesel by Rs 1.44 on Sunday.
The move follows the Centre’s announcement on Saturday to cut excise duty on petrol and diesel by Rs8/litre and Rs6/litre, respectively.
A statement released by the Maharashtra government said that as a result of the decision, the state treasury would bear an annual loss of Rs2,500 crore. After reducing VAT on petrol and diesel, the former’s monthly income would be reduced by Rs80 crore, while that of the latter by Rs125 crore.
Apart from Maharashtra, even Kerala and Rajasthan have announced reduction in fuel tax, after the Center’s announcement.
Earlier on Sunday, Rajasthan Chief Minister Ashok Gehlot tweeted that the state government had cut VAT on petrol and diesel by Rs2.48/litre and Rs1.16/litre, respectively. He said it would make petrol Rs10.48/litre and diesel Rs7.16/litre cheaper in the state.
On Saturday, the Kerala government announced a drop in petrol and diesel prices by Rs 2.41/litre and Rs 1.36/litre, respectively. “The Union government has partially reduced the huge tax on petrol and diesel fuel. The Kerala government welcomes this decision,” Kerala Finance Minister KN Balagopal said in a statement on Saturday.
Karnataka’s Chief Minister has also said that his government will consider further fuel tax reduction. “The Center’s decision fell on Saturday night, let’s see, we’ll think about it,” Bommai said on Sunday.
With PTI entries