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States have been urging Centre to reduce Value Added Tax on petrol, diesel (Representational)
Highlights
- This came just hours after Centre announced a cut in excise duty on fuel
- The price cuts will come into effect from Thursday – November 4
- States have been for long urging the Centre to reduce the VAT on fuel
New Delhi:
Seven BJP-ruled states – Assam, Tripura, Manipur Karnataka, Goa, Himachal Pradesh and Uttarakhand – have announced additional cuts in prices of petrol and diesel on Wednesday. This came just hours after the Centre announced a cut in excise duty on petrol and diesel by Rs 5 and Rs 10 respectively on the eve of Diwali, aiming to provide relief to people reeling under the impact of spiralling fuel prices. The price cuts will come into effect from Thursday – November 4.
Assam, Tripura, Manipur, Karnataka and Goa have reduced the prices of both the fuel by Rs 7 per litre in addition to the Centre’s relief. Uttarakhand Chief Minister Pushkar Singh Dhami on Wednesday said that the VAT on petrol will be reduced by Rs 2 per litre in the state. Himachal Pradesh Chief Minister Jairam Thakur said that the state will soon issue a notification to reduce Value Added Tax (VAT) on petrol and diesel.
“Following Hon’ble PM Shri @narendramodi Ji led central govt’s decision on reduction of excise duty on petrol & diesel. #Tripura govt has also decided to reduce petrol & diesel cost by Rs 7 from tomorrow,” Deb tweeted on Wednesday.
States have been for long urging the Centre to reduce the Value Added Tax on both petrol and diesel – the prices of which have been on an upward climb over the last few months. Petrol prices, in some states, had touched Rs 120 per litre while diesel has crossed the Rs 100 per litre mark in three metros.
The Opposition has been up in arms, regularly attacking the Centre on rising prices of fuel. On November 1, Congress leader Rahul Gandhi, in a tweet about petrol and diesel rates, wrote that one should beware of “pickpockets” along with the hashtag “tax extortion”.
On Wednesday, the petrol price in Delhi stood at Rs 110.04 per litre while diesel was being sold for Rs 98.42. In Mumbai, petrol was at Rs 115.85 per litre while diesel was at Rs 106.62 per litre.
In recent months, crude oil prices have witnessed a global upsurge. Consequently, domestic prices of petrol and diesel skyrocketed in recent weeks. “Today’s decision is expected to further spur the overall economic cycle,” the Centre said in a statement.
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