Petrol, diesel prices: 3 states that heard Centre's plea, slashed fuel tax
Many states are still reluctant to follow suit and reduce tax on petrol and diesel citing their inability to take more revenue strain.
FollowA day after Finance Minister Nirmala Sitharaman's appeal to states to provide relief to consumers following a cut in excise duty by the Centre, at least three states -- Maharashtra, Rajasthan and Kerala -- have decreased Value Added Tax on petrol and diesel. Some states are reluctant to follow suit citing their inability to take more revenue strain.
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To recall, the last time the government announced a reduction in excise duty on petrol by Rs 5 per litre and on diesel by Rs 10 a litre in November 2021, 25 states and UTs responded and slashed VAT on the fuel. States governed by non-BJP parties had refrained from revising the VAT.
Let's take a look at the states that have provided relief to consumers:
Maharashtra
The Shiv Sena-led Maharashtra government on Sunday announced that it was reducing the VAT on petrol by Rs 2.08 per litre and diesel by Rs 1.44 per litre. The VAT revision meant that the state government's exchequer will stand to lose Rs 2,500 crore annually. However, Opposition BJP believes that the relief offered is inadequate. Leader of Opposition Devendra Fadnavis said that people were expecting an announcement which 'suits the economic condition of Maharashtra'. The state should have borne at least 10 per cent of the burden, he said.
Kerala
Kerala's Left Democratic Front government had on Saturday announced that it will reduce the state tax on petrol and diesel prices by Rs 2.41 and Rs 1.36 per litre respectively. Opposition Congress, however, cast aspersions on the government's claims. Former Kerala chief minister and veteran Congress leader Oommen Chandy said it was unfortunate that the state government was claiming that it had cut the tax on petrol and diesel when in reality the reduction was a proportionate decrease due to the slash in excise duty by the Centre.
RajasthanÂ
Chief Minister Ashok Gehlot's administration too slashed the VAT by Rs 2.48 per litre on petrol and Rs 1.16 per litre on diesel. With this, petrol will be cheaper by Rs 10.48 per litre and diesel by Rs 7.16 per litre in the state. Shortly after the Centre's announcement on Saturday, Gehlot had called reductions in fuel prices a formality. He also sought that the central government should lower the fuel prices to levels that existed during the UPA rule.
With PTI inputs
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