Petrol, Diesel Prices: Rajasthan, Kerala slash VAT on fuel after Centre reduces excise duty

Following the Centre's move to reduce excise duty on petrol and diesel prices, two states including Rajasthan and Kerala have cut down VAT to give relief to people. Check details here.

By Sugandha Jha
Sun, 22 May 2022 08:33 AM IST
Minute Read
Petrol, Diesel Prices: Rajasthan, Kerala slash VAT on fuel after Centre reduces excise duty
Petrol, diesel prices

New Delhi | Jagran Business Desk: After the Centre slashed fuel prices by reducing excise duty on petrol and diesel, two state governments including Rajasthan, where Value-added tax (VAT) is the most and Kerala have cut down VAT to give ease to people.

The Rajasthan government on Saturday reduced Value-added tax on petrol by Rs 2.48 per litre and diesel by Rs 1.16 per litre, following the reduction of excise duty by the Centre.

Taking to Twitter, the state chief minister Ashok Gehlot wrote, "Due to the reduction in the prices of petrol and diesel by the central government, the state government will reduce VAT by Rs 2.48 per litre on petrol and Rs 1.16 per litre on diesel. With this, petrol will be cheaper by Rs 10.48 and diesel by Rs 7.16 per liter in the state."

The Kerala government also announced a cut in tax on the prices of petrol and diesel by Rs 2.41 and Rs 1.36 respectively.

"Kerala government announces cut in tax on petrol and diesel by Rs 2.41 and Rs 1.36 respectively," state Finance Minister KN Balagopal said.

This comes after the Centre announced a reduction in excise duty on fuel in a significant step aimed at providing relief to people from high fuel prices on Saturday.

Making the announcement in tweets, Finance Minister Sitharman said that the move will have a revenue implication of around Rs 1 lakh crore per year. The minister, who made several other announcements aimed at curbing inflation said subsidy will be provided on cylinders under the Ujjwala scheme.

She urged states to also reduce VAT on petroleum products to give relief to the common man.The government had similarly reduced excise duty on petrol and diesel in November last year on the eve of Diwali. It had reduced excise duty on petrol by Rs 5 a litre and on diesel by Rs 10 a litre.

(With inputs from ANI)

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