State cuts value added tax by 4 per cent on essential fuels after Centre slashed excise duty by 2 per cent.
Mumbai: Gujarat chief minister Vijay Rupani has said his government has cut value added tax, VAT, rate on petrol and diesel by 4 per cent merely weeks before Diwali. The state is holding assembly polls later in the month of December this year.
Last week, the central government had announced a 2 per cent cut in excise duty on petrol and diesel making these two essential fuels cheaper by Rs 2 per litre. Petroleum Minister Dharmendra Pradhan at that time had asked state governments to follow suit and bring in a cut in VAT on petrol and diesel.
Chief Minister Vijay Rupani said, "After the central government's instructions, Gujarat has decided to reduce VAT on petrol and diesel by 4 per cent from today mid-night."
After this announcement the effective price of petrol in Gujarat from mid-night on Tuesday will be Rs 66.53 per litre and that of diesel Rs 60.77 per litre, the chief minister added.
Due to the recent cut in VAT on petrol and diesel, the price of petrol will come down by Rs 2.93 and that of diesel by Rs 2.72 in the state, Rupani further informed.