Ahead of the state assembly elections, the Maharashtra government has decided to reduce the value-added tax or VAT on fuel, resulting in lower prices for residents in Mumbai and Mumbai metropolitan region.
Deputy Chief Minister and State Finance Minister Ajit Pawar announced the VAT reduction while presenting the Maharashtra Budget 2024-25.
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The revised VAT will lower petrol prices by 65 paise per litre and diesel prices by 2.60 rupees per litre.
The tax on diesel will decrease from 24 percent to 21 percent, and the tax on petrol will decrease from 26 percent to 25 percent. The new rates will be effective July 1st 2024.
This announcement comes ahead of the state assembly elections, which are expected to be held in October.