11 States reduce their VAT rates on fuel

So far, 11 States have joined the Centre in cutting their tax rates on petrol and diesel by ₹2.5 per litre, with BJP president Amit Shah saying that all BJP-led States have agreed to implement the rate cuts.

Maharashtra, Gujarat, Uttar Pradesh, Haryana, Assam, Tripura, Madhya Pradesh, Jharkhand, Arunachal Pradesh, Himachal Pradesh, and Chhattisgarh were the 11 to match the Centre’s rate cut.

Rajasthan had last month cut its state VAT by ₹2.5 per litre, while Karnataka and Andhra Pradesh both had cut their VAT rates by ₹2 per litre. West Bengal and Kerala had cut their VAT rates on petrol and diesel by ₹1 per litre in September and May, respectively. Karnataka and Kerala refused to cut rates further following Thursday’s development.

“Ever since the Modi government assumed office, it has raised excise duty on diesel by ₹14 and petrol by ₹9 per litre,” Kerala Finance Minister Thomas Isaac reportedly said following the decision. “You should understand that the reduction effected on Thursday is on this amount. If the Centre is serious, it should reduce the tax to what it was when it assumed office. Then we will also step in.”

“The Centre had hiked excise duty by ₹10 and reduced it by only ₹2.50. This is cheating. The Modi government should reduce excise by ₹10,” Delhi Chief Minister Arvind Kejriwal tweeted on Thursday.

Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Sep 16, 2021 2:06:54 PM |

Next Story