Maharashtra slashes VAT on petrol and diesel.
After Kerala and Rajasthan, Maharashtra has now reduced VAT on petrol by Rs 2.08 and diesel by Rs 1.44 per litre. This comes a day after Centre reduced excise duty on fuel.
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 petrol and diesel, the per month revenue from petrol will reduce by Rs 80 crore, while that from diesel by Rs 125 crore. The central government on Saturday announced a record Rs 8 per litre cut in excise duty on petrol and Rs 6 reduction on diesel.
Senior Congress leader P Chidambaram on Sunday wondered whether the states can afford to give up revenue from the Value Added Tax (VAT) on petrol and diesel unless the Centre devolves more funds or gives them more grants, likening their situation to being between “the devil and the deep sea”.
Also Read: 'Devil and deep sea': Chidambaram questions excise duty cut, asks if states can afford to lose VAT
