Maharashtra follows suit, slashes VAT on fuelhttps://indianexpress.com/article/business/maharashtra-follows-suit-slashes-vat-on-fuel-4883434/

Maharashtra follows suit, slashes VAT on fuel

The announcement comes on the day the Gujarat government became the first state to slash VAT on fuel.

After Centre’s appeal to States to reduce VAT on fuel, the Maharashtra government on Tuesday slashed the tax, bringing down petrol and diesel prices by Rs 2 and Rs 1 a litre respectively from midnight, according to news agency PTI.

The announcement comes on the day the Gujarat government became the first state to slash VAT on fuel. Chief Minister Vijay Rupani said his government decided to reduce the VAT by 4 per cent. He said the annual income of the state government will go down by by Rs 2316 crore. With immediate effect from midnight, petrol and diesel in Gujarat will be Rs 67.53 and Rs 60.77 per litre respectively.

“Some days back, Central Government had announced cut in excise on fuel and it had also recommended state governments to consider change in their taxation so that people of the country can have relief in charges of petrol and diesel. Elections are coming in Gujarat, but not in other states. Plus, this is going to be a long term and steady rate,” said Rupani.