Meranews, Ahmedabad: The Gujarat government on Tuesday cut value-added tax (VAT) on fuel in the state, complying with a directive from the Union government last week on the matter.
“We are cutting down the VAT on fuel by 4 percent. Hence, the price of petrol will come down by Rs2.93 and that of diesel by Rs2.72,” said chief minister Vijay Rupani.
Rupani, who heads the Bharatiya Janata Party (BJP) government in Gujarat, had earlier said the state would reduce taxes on petrol and diesel in the coming two or three days in line with the Central directive.
The Centre had announced last week that excise duty on fuel would be cut, saying the move was an attempt the “cushion the impact of rising international prices of crude petroleum oil, and petrol and diesel on their retail sale prices.”
A day later, Union petroleum minister Dharmendra Pradhan asked the states of cut VAT on fuel by 5 percent. “We urged the states to take responsibility just like the Centre did, in direction of consumer interest, so that they get more relief,” he said.
Madhya Pradesh chief minister Shivraj Singh Chouhan said his government will have a discussion on the matter, adding: “Wait for Diwali.”
Meanwhile, the Kerala government, led by an alliance of the Communist Party of India (Marxist) and the Congress, objected to the directive, stating that the current status is unfavourable for implementation of the move (With inputs from ANI)