After govt reduces excise duty, states slash VAT on fuel

After the Centre reduced excise duty on fuel on Wednesday, several BJP-ruled states announced a further reduction of Rs 7 per litre on Value Added Tax (VAT) on both petrol and diesel. The Centre reduced the excise duty on petrol by Rs 5 and that on diesel by Rs 10, to be effective from Thursday.

Goa

In a tweet late in the evening, Goa Chief Minister Pramod Sawant wrote, “The Modi Govt. has given a great Diwali gift to all Indians by announcing reduction in Excise Duty on Petrol and Diesel… In addition, Government of Goa shall reduce an additional Rs 7 on Petrol and Rs 7 on Diesel, thereby reducing the price of diesel by Rs 17 per litre and petrol by Rs 12 per litre.”

Assam

Assam announced a reduction in VAT on both the fuels by Rs 7 per litre with immediate effect. Chief Minister Himanta Biswa Sarma announced the state government’s decision on Twitter. “Heartening to learn Central Govt decision to reduce excise duty on petrol and diesel. In consonance with the decision of Honble PM @narendramodi, I am pleased to announce that Assam Govt will also reduce VAT on petrol and diesel each by Rs 7/- with immediate effect,” he said. On October 29, Sarma had said his government was ready to cut its share of taxes on fuel if the high rates continue.

Gujarat

A statement from Gujarat Chief Minister Bhupendra Patel’s office said the state government has decided to reduce the VAT on petrol/diesel by Rs 7 per litre in the state following Central government decision to reduce excise duty on it.