Mumbai(Maharashtra):In a bid to provide relief to the people of Maharashtra from skyrocketing fuel prices, Newly sworn-in Maharashtra Chief Minister Eknath Shinde on Monday announced that the state government will reduce value added tax (VAT) on petrol and diesel. A decision to reduce VAT on fuel will be taken in the state Cabinet, Shinde informed the Legislative House, while replying to a debate after he won the floor test.
Addressing a press conference today after attending today's Assembly session, Shinde said, "We will cut VAT on petroleum to provide relief to the people of Maharashtra. When the Central government comes with any state government, the speed of development increases multifold in that state. We will surely get benefit from Devendra Fadnavis's experience." Presently in Mumbai, the rate of petrol is Rs 111.35 per litre and diesel is being sold at Rs 97.28 per litre.
In April this year, Prime Minister Narendra Modi had said that the Centre and states should work in tandem, reiterating the theme of cooperative federalism, calling on states that haven't followed the reduction in excise duty on petrol and diesel by the Centre in November with a decrease in Value Added Tax (VAT) to do so. He emphasised that high taxes on petrol and diesel in such states - almost all opposition-led - are an injustice to the people.
The Maharashtra government had also cut the state-imposed tax on petrol and diesel by Rs 2.08 per litre and Rs 1.44 per litre at the end of May. The move had come after the central government on May 21 announced a tax reduction on petrol by Rs 8 per litre and on diesel by Rs 6 per litre. Union Finance Minister had also urged the states to follow the suit by cutting state levies on fuels.