Highlights

  • At least 3 states cut Value Added Tax (VAT) on petrol, diesel
  • Rajasthan, Maharashtra, Kerala's move after Modi govt's decision
  • On May 21, Union govt cut excise duty on fuel amid rising inflation

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Petrol, diesel prices: 3 states reduce VAT after Modi govt's excise cut - Maharashtra, Rajasthan, Kerala

Petrol, diesel prices: Rajasthan, Maharashtra, and Kerala announced a cut in Value Added Tax, or VAT on fuel after the Narendra Modi administration's decision to reduce excise duty.

Following the Union government's decision to provide relief from high petrol and diesel prices, some Opposition-ruled states have followed suit.

Rajasthan, Maharashtra, and Kerala announced a cut in Value Added Tax, or VAT on fuel after the Narendra Modi administration's decision to reduce excise duty on petrol and diesel.

The Shiv Sena-NCP-Congress coalition government in Maharashtra reduced VAT by Rs 2.08 per litre on petrol, and Rs 1.44 per litre on diesel.

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The Congress government in Rajasthan announced slashing of VAT by Rs 2.48 per litre on petrol, and Rs 1.16 per litre on diesel.

Meanwhile, the Left government in Kerala had announced a price cut just hours after the Union government's declaration on May 21. Kerala reduced tax by Rs 2.41 per litre on petrol, and Rs 1.36 per litre on diesel.

Union finance minister Nirmala Sitharaman had put the onus on states after announcing the excise duty relief. The move came as retail inflation hit an 8-year high in India.

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