Maharashtra, Rajasthan and Kerala have decreased VAT on petrol and diesel after Finance Minister Nirmala Sitharaman’s call to provide further relief to consumers. The Centre announced a reduction in excise duty on petrol by ₹8 per litre and on diesel by ₹6 per litre.
Maharashtra government slashed the VAT on petrol by ₹2.08 per litre and diesel by ₹1.44 per litre. A statement issued by the government said the state exchequer will have to bear an annual loss of ₹2,500 crore as a result of this decision. After reducing the VAT on petrol and diesel, the per month revenue from petrol will reduce by ₹80 crore, while that from diesel by ₹125 crore.
Rajasthan Chief Minister Ashok Gehlot also said the state government will reduce VAT by ₹2.48 per liter on petrol and ₹1.16 per liter on diesel. The Rajasthan government on Saturday reduced Value-added tax (VAT) on petrol by ₹2.48 per litre and diesel by ₹1.16 per litre, following the reduction of excise duty by the Centre.
“Kerala government announces cut in tax on petrol and diesel by ₹2.41 and ₹1.36 respectively,” state Finance Minister KN Balagopal said.
Rates differ from state to state depending on the incidence of local taxes such as VAT. Andhra Pradesh has the highest VAT on petrol and diesel in the country, followed by Rajasthan and BJP-ruled Madhya Pradesh.
