States this week reduced VAT in response to the Centre’s decision to cut excise duty on petrol and diesel last week.
Mumbai: The Madhya Pradesh government on Friday slashed VAT on petrol and diesel by 3 per cent and 5 per cent respectively.
This development comes close on the heels of the Uttarakhand, Maharashtra and Gujarat governments reducing VAT on petrol and diesel in their respective states.
Madhya Pradesh CM Shivraj Singh Chouhan on Friday said, “Have reduced 5 per cent VAT on diesel and 3 per cent on petrol. New prices will come into effect from midnight.”
States this week reduced VAT in response to the Centre’s decision to cut excise duty on petrol and diesel last week. In the wake of escalating petrol and diesel prices, Finance Minister Arun Jaitley had said that it was up to states to reduce VAT, since they were direct beneficiaries of the same.
The uptick in petrol and diesel prices weighed heavy on consumer inflation in September, contributing to 5.56 per cent of the index. Prices started surging June end onwards and climbed up to a three-year high.
Petroleum minister Dharmendra Pradhan has called for the inclusion of petrol and diesel under the ambit of GST to ensure uniformity of prices.