The Maharashtra government announced that the Value Added Tax (VAT) will be reduced by Rs. 2.08 for petrol per litre and Rs.1.44 for diesel per litre with immediate effect. It was a day after Finance Minister Nirmala Sitharaman took to Twitter. To announce that the Indian government had decided to slash the excise duty on petrol and diesel prices.
Following the cut in VAT, the Maharashtra government is likely to lose a monthly total of 80 crores on petrol and 125 crores on diesel. The government will lose 2,500 crores in revenue each year. One litre of petrol would cost 109.27 in Mumbai following the lowering of excise duty and the state’s decision to reduce VAT.
On Saturday, Chief Minister Uddhav Thackeray stated that. The Centre’s decision to decrease excise duty on fuel by $8 per litre and diesel. By $6 per litre was insufficient. On Saturday, Finance Minister Nirmala Sitharaman announced an excise duty drop of $8 per litre on gasoline and $6 per litre on diesel.
Maharashtra follows 2 states before big move
Previously, the Rajasthan government decreased VAT on fuel by 2.48 cents per litre and diesel by 1.16 cents per litre. Petrol will be 10.48 cents cheaper per litre throughout the state, and diesel will be 7.16 cents cheaper. Kerala’s government also reduced petrol and diesel tariffs by 2.41 and 1.36 percent, respectively.
On Sunday, Karnataka Chief Minister Basavaraj Bommai stated that his government will examine more fuel tax reductions.