Guj, M'rashtra, HP cut VAT on petrol, diesel

With this rate cut, the price of petrol will come down by Rs 2.93 and that of diesel by Rs 2.72 in the state, he said. The effective price of petrol in Gujarat from mid-night today will be Rs 67.53 per litre and that of diesel Rs 60.77 per litre, the chief minister said. Photo credit: PTI. Representational Image.

BJP-ruled states, poll-bound Gujarat as well as Maharashtra on Tuesday announced a cut in VAT on petrol and diesel.

Himachal Pradesh also decided to cut VAT by 1% on petrol and diesel.

Gujarat reduced VAT by 4 %, while in Maharashtra the reduction will bring down price of petrol by Rs 2 a litre and diesel by Re 1.

“With the reduction in VAT, price of petrol will be cut by Rs 2.93 a litre and that of diesel by Rs 2.72 a litre,” Gujarat Chief Minister Vijay Rupani told mediapersons.

Earlier, Gujarat had cut prices of auto fuels by 60 paise soon after the Centre’s decision to reduce basic excise duty by Rs 2 a litre from October 4.

“It is a Diwali gift to the people of Maharashtra,” finance, planning and forest minister Sudhir Mungantiwar said after a Cabinet meeting. “The decision to reduce VAT will cause an annual revenue loss of Rs 3,000 crore to the state exchequer.We are ready to bear the additional burden.”

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