In further relief to common man of Gujarat, the state government has decided to follow the request of the central government to slash VAT on petrol and diesel in order to make these items cheaper.
Chief Minister Vijay Rupani today said that the government will reduce taxes on petrol and diesel in the next two or three days.
“Apart from the central taxes that have been reduced, Gujarat government will cut down on state-related taxes on petrol and diesel,” he said.
Gujarat becomes the first state to reduce VAT on fuel prices after the Centre urged states to cut taxes to check fuel prices. Gujarat currently levies a 28.96 per cent VAT on petrol and diesel.
Apart from Gujarat, other BJP-ruled states including Madhya Pradesh have expressed compliance to the Centre’s directive. However, opposition-led state governments have differed on the matter.
Madhya Pradesh Chief Minister Shivraj Singh Chouhan today said that the government will have a serious discussion on the topic and quipped, “Wait for Diwali!”
The CPI(M) government in Kerala has objected to the directive, citing that the status is unfavourable to implement the move.
“The State Government’s financial status is unfavourable to take the initiative to reduce tax. At this stage, the Centre should reduce the tax. The Centre first increased the prices of petrol and diesel, then reduced it by Rs. 2. So, the states had to follow suit. Let the Centre reduce the tax first,” state Finance Minister Thomas Isaac said.
Earlier this week, the Centre had cut basic excise duty on petrol and diesel by Rs 2 a litre. Oil Minister Dharmendra Pradhan had on Wednesday asked the states to slash the VAT on petrol and diesel in direction of the consumer interest.
BJP-ruled Maharashtra levies 46.52 per cent VAT (47.64 per cent in Mumbai) on petrol, the highest in the country. Andhra Pradesh has 38.82 per cent VAT on petrol while BJP-governed Madhya Pradesh levies 38.79 per cent VAT on the fuel. BJP-led NDA governs 18 out of the 29 states. Delhi and Himachal Pradesh levy 27 per cent VAT on petrol while Punjab has 36.04 per cent VAT. Haryana levies 26.25 per cent VAT.
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