Gujarat government cuts VAT by 4 per cent on petrol, diesel

With this rate cut, the price of petrol will come down by Rs 2.93 and that of diesel by Rs 2.72 in the state from Tuesday midnight, CM Vijay Rupani said. The new price of petrol in Gujarat will be Rs 67.53 per litre.

By: Express News Service | Gandhinagar | Updated: October 11, 2017 12:40 am
petrol price, diesel price, gujarat vat price, gujarat vat price, gujarat gst price, gujarat vat reduction, gst, vijay rupani, gujarat elections, gujarat polls, business news Vijay Rupani took charge in August last year

Amid the growing criticism on rising fuel prices and days ahead of the announcement of dates for Gujarat Assembly elections, the state government on Tuesday reduced the Value Added Tax (VAT), charged by it, on petrol and diesel by 4 per cent. Till now, the government has been levying 24 per cent VAT on petrol and diesel.“After the central government’s instructions, Gujarat has decided to reduce VAT on petrol and diesel by 4 per cent from Tuesday midnight,” Chief Minister Vijay Rupani said at a press meet here.With this rate cut, the price of petrol will come down by Rs 2.93 and that of diesel by Rs 2.72 in the state from Tuesday midnight, he said. The new price of petrol in Gujarat will be Rs 67.53 per litre.

With this rate cut, the price of petrol will come down by Rs 2.93 and that of diesel by Rs 2.72 in the state from Tuesday midnight, he said. The new price of petrol in Gujarat will be Rs 67.53 per litre and that of diesel Rs 60.77 per litre.According to Rupani, the tax cut will decrease the annual income of the state government by Rs 2,316 crore. VAT is a major source of income for the state government. Annually, the government earns around Rs 12,000 crore from VAT.With the state going to polls later this year, the announcement is being seen as an attempt by the BJP government to woo the people.

However, Rupani refused to term the tax cut as a poll sop. “Some days back, the Central government had announced cut in excise on fuel and it had also recommended the state governments to consider “Some days back, the Central government had announced cut in excise on fuel and it had also recommended the state governments to consider

“Some days back, the Central government had announced cut in excise on fuel and it had also recommended the state governments to consider change in their taxation so that people can get relief in fuel prices. Elections are coming in Gujarat, but not in other states. Plus, this is going to be a long term and a steady rate,” Rupani added.Deputy Chief Minister Nitin Patel, who holds the finance portfolio, called the decision a ‘Diwali gift’ to the people of Gujarat.

“We will face a drop in the (government’s) income due to this decision, but we are hoping that due to cheaper rate of the fuel, vehicles of bordering states will also buy fuel from Gujarat which will compensate the loss of income to some extent as the sale of the fuel will increase.”The Congress alleged that the step was taken by the government with an eye on the Assembly polls. “They (government) have come under pressure after looking at the response Congress vice-president Rahul Gandhi has been getting during his campaign tour in Gujarat,”  party spokesperson Shaktisinh Gohil said.

(With PTI inputs)

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