Ten States cut VAT on diesel, petrol

New Delhi: After the Centre’s decision to cut excise duty on petrol and diesel, several BJP and NDA-ruled states announced to reduce Value-Added Tax (VAT) on fuel to further provide relief to consumers. The Centre yesterday announced to slash excise duty on petrol by 5 rupees and that of diesel by 10 rupees. The Centre had also urged the states to reduce the VAT on petrol and diesel.

Hours after the announcement, governments of several BJP-ruled States including Uttar Pradesh, Gujarat, Assam, Goa, Tripura, Karnataka, Uttarakhand, Himachal Pradesah, Manipur and Bihar declared to reduce VAT on fuel.

Uttar Pradesh government said that the prices of diesel and petrol in the state will be reduced by 12 rupees per litre.

Haryana Chief Minister Manohar Lal Khattar has said that his government will soon announce reduction in VAT on petrol and diesel.

Goa Chief Minister Pramod Sawant announced an additional reduction of 7 rupees on fuel, thereby reducing the price of diesel by 17 rupees per litre and petrol by 12 rupees per litre in the state.

Assam Chief Minister Himanta Biswa Sarma also declared to reduce VAT on petrol and diesel by 7 rupees each.

Karnataka government joined the league and announced a reduction in VAT by 7 rupees each on petrol



and diesel.

Following suit, Tripura, Manipur and Gujarat governments announced a cut on VAT by the same amount each on petrol and diesel.

The NDA-led Bihar government has also announced to slash VAT on Petrol and Diesel. Effectively petrol will be cheaper by 6.30 rupees and Diesel by 11.90 rupees per litre in Bihar.

Uttarakhand government has announced to slash VAT on petrol by 2 rupees per litre and as a result, petrol will be cheaper by 7 rupees per litre in the state.

Several Union Minister have hailed the government's decision to reduce excise duty on petrol and diesel. Union Petroleum Minister Hardeep Singh Puri thanked Prime Minister Narendra Modi for the decision and said that states should also reduce Value Added Tax on fuel to give further relief to consumers.

Union Education Minister Dharmendra Pradhan also said that concrete action from state governments will lead to further reduction in fuel price and more relief to consumers. Mr. Pradhan, said that this is a responsible decision from the Modi government to bring relief to consumers.  

Commerce Minister Piyush Goyal said that the move will benefit common people, further boost consumption and spur our economy.