Bhopal: The state government, under pressure from the central leadership of the BJP, may announce reduction of VAT on petrol and diesel in the state on Wednesday. The announcement may follow a discussion on the issue at the Cabinet meeting. Sources say that there is tremendous pressure from Delhi for reducing the price of the two fossil fuels by slashing VAT, so as to send a positive signal to the people.
Gujarat and Maharashtra have already done the central leadership’s bidding while Chhattisgarh has sought exemption on the ground that VAT is already low in the state. The state government, presently, charges 31 per cent VAT on petrol and 27 per cent on diesel. In addition, the state also charges cess at the rate of Rs 4 per litre and Rs 1.5 per litre on petrol and diesel respectively. According to finance minister Jayant Mallaiya, any decision in this regard will be taken after discussion with the chief minister.
Sources said that the government is busy determining the quantum of reduction that can be effected. The total revenue from VAT on petrol and diesel and the potential impact of the move on the state exchequer are being assessed. Concessions for industrialists to continue post-GST: The tax breaks, incentives and concessions granted to the industrialists have ended after the advent of the GST regime in the country. The government is trying to find way out by adopting a new industrial policy. A proposal to this effect may come up for the consideration of the Cabinet on Wednesday. After GST, all the concessions being enjoyed by the industrialists stand withdrawn. With the end of these concessions, granted under the investment promotion policy, many industrialists are doing a serious re-think on their investment proposals. The government wants to continue with the tax incentives so as to prevent a possible exodus of industrial investors from the state.
Maha, Guj, HP cut VAT on fuel
Mumbai: Maharashtra, Gujarat and Himachal Pradesh on Tuesday announced cuts in Value Added Tax (VAT) on petrol and diesel, effective from midnight, to bring down fuel prices in the three states.