Mumbai: Petrol will be cheaper by Rs2 and diesel by Re1 per litre across Maharashtra from Tuesday midnight after the state government reduced the value-added tax (VAT) on the fuels.
Making the announcement about VAT reduction on petrol and diesel today, finance minister Sudhir Mungantiwar termed it as a “Diwali gift" to people of the state. The revised rates will be applicable from midnight today, he said.
“The chief minister has approved a proposal to reduce the VAT on petrol and diesel by Rs2 and Re1 a litre, respectively. This is our Diwali gift to the masses," Mungantiwar told PTI.
He said the decision will cause an annual revenue loss of Rs2,000 crore to the state exchequer. “The government is ready to bear the additional financial burden despite Maharashtra’s economy not being in a good shape," he said.
Earlier today, election-bound Gujarat cut value-added tax (VAT) on petrol and diesel by 4%, becoming the first state to give relief to consumers from the recent surge in global auto fuel prices.
The move follows the Central government’s move to cut excise duty on petrol and diesel by Rs2 last week, the first tax cut on fuel by the current government, to tame rising inflation.