Mumbai: Maharashtra Government has waived the Value Added Tax (VAT) levied by the states on petrol and diesel. After the trust vote, Shinde clarified the news in the assembly.
In Mumbai city, per litre cost of Petrol was Rs 111.35 and diesel Rs 97.28. At the end of May, the state tax on petrol and diesel was reduced by Rs 2.08 and Rs 1.44 respectively.
The Maharashtra government took this decision following the announcement of the central government to reduce the tax on petrol by Rs 8 and diesel by Rs 6.
The Union Finance Minister Nirmala Sitharaman had requested the states to reduce the tax after the central government’s decision to levy tax. But the states including Maharashtra and Kerala did not accept it.
The central government has waived the excise duty that comes under the road and infrastructure cess. The Finance Minister also stated that this will not affect the revenue received by the state from fuel prices.
Earlier in November, Centre reduced 5 Rs for petrol and 10 Rs for diesel. The PM requested the states to reduce the VAT on fuels and to give relief to the people.
The announcement is actually a relief to the people.