A worker counts Indian currency at a petrol pump in the northeastern Indian city of Siliguri February 5, 2008. India is set to raise retail petrol and diesel prices this week for the first time in 20 months, a senior oil ministry source said, as the government risks political capital to ease losses at state oil refiners. REUTERS/Rupak De Chowdhuri (INDIA)

Gujarat cuts VAT on petrol, diesel by 4%

The Gujarat government has announced that it will cut Value Added Tax (VAT) by 4 per cent on petrol and diesel. The Government of India has recently proposed to reduce VAT on these two fuels. The Gujarat government, which responded to this, officially announced about the details on Tuesday.

“The Gujarat government has reduced VAT by 4 per cent. This reduction comes from midnight on Tuesday. This reduces the price of petrol by Rs 2.93 per liter and diesel Rs 2.72 per liter. Petrol price in the state from today at midnight is Rs. 66.53. The price of diesel is Rs. 60.77, “Gujarat Chief Minister Vijay Rupani said. The CM also said The decision would result in the government suffering a loss Rs. 2,316 crore annually, This decision was made on the basis of the Public Interest. The decision pointed out some interesting things as Assembly elections in Gujarat a head.

Recently, the Center reduced Petrol and Diesel excise duty. As already known that Union Finance Minister Arun Jaitley recently wrote to all State governments nudging them to reduce taxes on petrol and diesel. Union Oil Minister Dharmendra Prasad made suggestions that the States would also reduce VAT. The Gujarat government has responded to it and said the Madhya Pradesh government is also considering the proposal.



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