Gujarat Becomes First State to Reduce VAT on petrol, diesel cuts taxes by 4 per cent

Gujarat Becomes First State to Reduce VAT on petrol, diesel

The Gujarat government on Tuesday 4 per cent cut in the value-added tax (VAT) on petrol and diesel, cutting down their costs by Rs 2.93 and Rs 2.72 respectively. The move comes in a week after Finance Minister Arun Jaitley, declared the cut in excise duty on oil and asked the states to cut sales tax or VAT on petrol and diesel to provide some relief to customers due to raising prices of petrol and diesel in the country.

The BJP government at the Center has gone under savage feedback over high fuel costs.

Between November 2014 and January 2016, center has increased the excise duty on petrol by Rs 11.77 per litre and Rs 13.47 a litre on diesel.

The Center had raised extract obligation by Rs 11.77 for every litre on oil and Rs 13.47 a litre on diesel between November 2014 and January 2016 to take away picks up emerging from plunging international oil rates.

In last week, the excise duty on petrol was reduced from earlier Rs 21.48 per litre to 19.48 per litre whereas on diesel it was reduced from Rs. 17.33 to Rs. 15.33 on per litre basis.

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