Mumbai: Gasoline will be cheaper for Rs2 and diesel for Re1 per liter through Maharashtra since midnight Tuesday after the state government has reduced the value added tax (VAT) on fuels.
Announcing the reduction of VAT on gasoline and diesel today, Finance Minister Sudhir Mungantiwar described it as a “gift of Diwali” to the inhabitants of the State. The revised tariffs will apply from midnight today, he said.
“The Prime Minister has approved a proposal to reduce VAT on gasoline and diesel by Rs2 and Re1 one liter respectively.This is our Diwali gift to the masses,” Munti PTI said.
He said the decision will cause an annual revenue loss of Rs2,000 crore at the checkerboard stage. “The government is prepared to bear the additional financial burden, even if the economy of Maharashtra is not healthy,” he said.
Today, Gujarat has reduced VAT on gasoline and diesel by 4%, making it the first state to relieve consumers by the recent increase in world fuel prices.
This decision follows the central government’s decision to reduce the excise tax on gasoline and diesel by Rs2 last week, the first reduction in fuel taxes by the current government, in order to control the increase in gasoline and diesel ‘inflation.