India: State govt cuts VAT on petrol and diesel in Gujarat and Maharashtra

  • The Gujarat government has reduced VAT by 4% and the cut will be effective starting the intervening night of 10-11 Oct 17. The announcement by Gujarat chief minister Vijay Rupani and deputy chief minister Nitin Patel comes just days before Diwali and ahead of Assembly polls in the state in end-2017.
  • Rupani said: “After the Central government’s instruction, we discussed it with the state finance department and have decided to reduce VAT by 4% in larger public interest. Because of this decision, the state government will suffer loss of INR23.16bn. This is for the first time that VAT has been drastically cut by 4% in one go.”
  • With this cut, the price of petrol would come down by INR 2.93 to INR 66.53 per litre and diesel by INR 2.72 to INR 60.77 a litre in the state.
  • In Maharashtra, the announcement to cut VAT on petrol and diesel was made by state finance minister Sudhir Mungantiwar who termed it a “Diwali gift” for the people. “The chief minister has approved a proposal to reduce VAT on petrol and diesel by INR 2 and INR 1 a litre, respectively. This is our Diwali gift to the masses,” Mungantiwar said. He added that the decision will cause an annual revenue loss of INR20bn to the state exchequer.

External Link : http://www.financialexpress.com/economy/petrol-diesel-prices-set-to-fall-in-maharashtra-gujarat-here-is-why/889551/

External Link : http://www.financialexpress.com/economy/maharashtra-cuts-vat-on-petrol-diesel-shiv-sena-seeks-more-relief/889703/

11-Oct-2017


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