Kerala, Rajasthan, and Maharashtra reduce petrol and diesel VAT

Kerala, Rajasthan, and Maharashtra reduce petrol and diesel VAT: check the new rates

 

Rajasthan has announced a VAT cut on petrol of Rs2.48/liter. Maharashtra reduces the VAT on diesel by Rs1.44/liter and on petrol by petrol by Rs2.08.

The news comes a day after the union government announced to reduce the excise duty on diesel and petrol. On Sunday, Kerala, Rajasthan, and Maharashtra decided to reduce VAT on petroleum products. The decision comes after the call of Nirmala Sitharaman, the Union Finance Minister of India, to reduce the VAT. However, many states have expressed the inability to abide by the decision. They cited a decline in revenue collection as the reason to do so.

Maharashtra reduced the fuel prices

Maharashtra’s state government reduces the VAT on diesel by Rs1.44/liter and on petrol by Rs 2.08/liter. The officials said that this reduction of taxes on petrol and diesel would cost the state exchequer Rs2500 crore annually.

Rajasthan cuts excise duty on fuel

Ashok Gehlot, the Chief Minister of Rajasthan, also decided to reduce VAT on petrol and diesel by Rs2.48/liter and Rs1.16/liter.

Kerala cuts VAT on petrol and diesel

Earlier, the Kerala government announced to reduce the VAT on petroleum products. The left front ruling state decided to reduce the excise duty on petrol by Rs2.41/liter and diesel by Rs1.36/liter.

VAT cut in Tamil Nadu

However, the Tamil Nadu government rejected the call for reducing VAT. The officials said that the union government never asked the states before increasing the excise duty on diesel and petrol. PalanivelThiagarajan, the state finance minister, said the fuel prices are still higher than in 2014. He alleged that the petrol and diesel are at high rates even after cutting down the central excise duty.

Center cuts excise duty on petrol and diesel

The union government announced the reduction of central excise duty on petroleum products on Saturday. The authorities decided to cut the taxes on petrol by Rs8 per liter and diesel by Rs6 per liter. The union finance minister also asked the state governments to reduce VAT at their levels in the announcement.

Following this, Rajasthan, Kerala, and Maharashtra decide to cut down VAT.

New fuel prices in other cities

The excise duty reduction in petroleum products would bring down the price of 1-liter petrol by Rs9.5 in Delhi. Also, the prices of diesel would reduce by Rs7 per liter.

Now petrol price in Delhi will be Rs95.91 per liter, and earlier it was Rs105.41 a liter. Whereas the price of diesel would be Rs89.67/liter, and earlier, it was Rs96.67/liter.

Petrol rates in Mumbai will be Rs111.35 per liter, and diesel would be Rs97.28 per liter. Meanwhile, in Chennai, the petrol prices would be Rs102.65 per liter, and the diesel prices would be Rs94.25/liter.

In Kolkata, the petrol prices have been reduced to Rs106.03 a liter and diesel prices to Rs92.76 a liter. Similarly, in Bengaluru, the new fuel prices are Rs101.94/liter and Rs87.89/ liter for petrol and diesel respectively.

The overall reduction in fuel prices has finally relieved the consumers.

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