Insurance

Maharashtra reduces VAT on petrol & diesel prices after govt cuts excise duty | Economy News

Maharashtra reduces VAT on petrol & diesel prices after govt cuts excise duty | Economy News
Written by Arindam

New Delhi: The Maharashtra government slashed VAT on petrol and diesel by Rs 2.08 per litre and Rs 1.44 per litre, respectively, on Sunday. The cut will take effect immediately, according to the Maharashtra government statement.

The Maharashtra government’s action comes just a day after the Centre cut excise rates on gasoline and diesel by Rs 8 and Rs 6 per litre, respectively. The drop in excise duty resulted in fuel and diesel prices falling by Rs 9.5 and Rs 7 per litre, respectively.

Finance Minister Nirmala Sitharaman had estimated that the cut in excise duty will save the government roughly Rs 1 lakh crore per year when she announced the measure.

Prime Minister Narendra Modi responded to Twitter shortly after the finance minister’s announcement, claiming that the actions demonstrated that his government always puts people first.

“Today’s decisions, especially the one relating to a significant drop in petrol and diesel prices will positively impact various sectors, provide relief to our citizens and further ‘Ease of Living’,” the prime minister had tweeted.

Earlier in the day, Chief Minister Ashok Gehlot tweeted that the Rajasthan government had lowered VAT on petrol by Rs 2.48 per litre and diesel by Rs 1.16 per litre.

Kerala finance minister KN Balagopal, on the other hand, stated that the administration has no plans to reduce the fuel sales tax. This comes a day after the minister said that the government would lower fuel and diesel taxes by Rs 2.41 per litre and Rs 1.36 per litre, respectively. The opposition, on the other hand, accused the minister of deceiving the public. “We have never raised fuel taxes in the last six years. At this point, the state cannot afford to lower taxes,” he stated.

About the author

Arindam

Leave a Comment