Maharashtra govt slashes VAT on petrol by Rs 2.8 and diesel by Rs 1.4 | Check new rates here

Apart from Maharashtra, Rajasthan and Kerala also reduction in VAT in their respective state. Scroll to know more.

By Ashita Singh
Updated: Sun, 22 May 2022 09:00 PM IST
Minute Read
Maharashtra govt slashes VAT on petrol by Rs 2.8 and diesel by Rs 1.4 | Check new rates here

Mumbai (Maharashtra) | Jagran News Desk: The Maharashtra administration on Sunday slashed the Value-added tax (VAT) on petrol and diesel just a day after the Central government announced a reduction in fuel prices. Now, in the state of Maharashtra VAT on petrol has been slashed by Rs 2.08 per litre and Rs 1.44 per litre has been reduced on diesel.

A statement issued by the government said the state exchequer will have to bear an annual loss of Rs 2,500 crore as a result of this decision. After reducing the VAT on fuel, the per month revenue from petrol will come down by Rs 80 crore, while that from diesel by Rs 125 crore, it said.

This reduction will bring down the prices of petrol in Mumbai to ₹ 109.27 per litre, while diesel will be priced at ₹ 95.84 per litre.

Following the footsteps of the Kerala government which had earlier reduced tax on the prices of petrol and diesel by Rs 2.41 and Rs 1.36 respectively, Thackeray led government stands midstage.

Rajasthan government also announced a reduction in VAT, with the VAT in Rajasthan on petrol going down by ₹ 2.48 per litre and the same on diesel going down by ₹ 1.16 per litre.

Earlier on Saturday, in a significant step aimed at providing relief to people from high fuel prices, the Centre announced a reduction in excise duty on petrol by Rs 8 per litre and on diesel by Rs 6 per litre.

Meanwhile, senior BJP leader Devendra Fadnavis said the reduction in VAT on fuel done by the Maha Vikas Aghadi (MVA) government was inadequate and termed it as a "cruel joke" played on the people.

"An announcement which suits the economic condition of Maharashtra was expected. Our share in the country's GDP is 15 per cent. The central government was bearing a financial burden of Rs 2,20,000 crore and the state should have borne at least 10 per cent of the burden," the Leader of Opposition in the state Assembly said.

While other state governments were giving relief of Rs 7 to Rs 10 per litre, the Maharashtra government announced a VAT reduction of only Rs 1.5 and Rs 2, he said.

(With Agency Inputs)

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