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India

Updated on: Friday, November 05, 2021, 10:26 PM IST

22 States/UTs reduce VAT on Petrol and Diesel following Centre's move on cutting down excise duty

For Diesel, the most reduction has been undertaken by Karnataka, leading to price coming down by Rs 19.49 per litre, followed by Puducherry and Mizoram.
Petrol and Diesel pump  | Photo: Representative Image

Petrol and Diesel pump | Photo: Representative Image

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Following Government of India's decision to significantly reduce Central Excise Duty on petrol & diesel by Rs 5 & Rs 10 respectively, 22 states/UTs have also undertaken a commensurate reduction of VAT on Petrol & Diesel. However, 14 States/UTs haven't undertaken any reduction, the Government of India informed.

However, there are 14 States/UTs which have not undertaken any reduction in VAT in Petrol and Diesel. These are Maharashtra, Delhi, West Bengal, Tamil Nadu, Telangana, Andhra Pradesh, Kerala, Meghalaya, Andaman & Nicobar, Jharkhand, Odisha, Chattisgarh, Punjab & Rajasthan.

The most reduction in the Petrol prices has been in Karnataka, followed by Puducherry and Mizoram. The prices in these states have come down by Rs 13.35, Rs 12.85, and Rs 12.62 respectively.

For Diesel, the most reduction has been undertaken by Karnataka, leading to price coming down by Rs 19.49 per litre, followed by Puducherry and Mizoram.

Meanwhile, Meghalaya CM Conrad Sangma said in a statement that Cabinet has decided to provide relief on the fuel prices in the state by reducing the VAT on petrol from 20% to 13.5% & diesel from 12% to 5% per litre, providing relief of Rs 10 to our consumers.

The additional reduction, on top of the excise duty cut, is the lowest in Uttarakhand because of lower duty cuts and the highest in UT of Ladakh. On petrol, the price reduction over-and-above excise reduction ranges from Rs 1.97 per litre in the case of Uttarakhand to Rs 8.70 in the case of UT of Ladakh.

For diesel, the additional reduction warranted by VAT cuts, ranging from Rs 17.5 a litre in Uttarakhand to Rs 9.52 in the case of Ladakh.

States that have so far not lowered VAT include Congress and its allies ruled Rajasthan, Punjab, Chhattisgarh, Maharashtra, Jharkhand and Tamil Nadu.

Wednesday's excise duty cut had translated into a reduction in the price of petrol in the range of Rs 5.7 to Rs 6.35 per litre across the country and diesel rates by Rs 11.16 to Rs 12.88.

(with ANI inputs)

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Published on: Friday, November 05, 2021, 10:26 PM IST
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