Assam on Wednesday announced a reduction in VAT on petrol and diesel by Rs 7 per litre with immediate effect, hours after the Centre slashed excise duty on fuel.
Lauding the step by the Union government, Chief Minister Himanta Biswa Sarma announced the state government's decision on Twitter.
''Heartening to learn Central Govt decision to reduce excise duty on petrol and diesel. In consonance with the decision of Honble PM @narendramodi, I am pleased to announce that Assam Govt will also reduce VAT on petrol and diesel each by Rs 7/- with immediate effect,'' he said.
On October 29, Sarma had said the state government was ready to cut its share of taxes on fuel if the high rates continue for a longer period.
Buckling under pressure, the Central government cut excise duty on petrol and diesel by a record Rs 5 and Rs 10 per litre to help bring down rates down from their highest-ever levels.
On Wednesday, the prices of petrol and diesel in Guwahati were Rs 106.10 and Rs 98.36 per litre, respectively.
(With inputs from PTI)
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