Maharastra govt reduces VAT on petrol & diesel

Mumbai, October 10: In a relief to the citizens of Maharashtra and Gujarat just ahead of Diwali, the two states have slashed value added tax (VAT)on petrol and diesel.

The Gujarat government on Tuesday reduced the VAT on petrol and diesel by 4 percent, becoming the first state to announce a reduction in the VAT while, the Maharashtra Cabinet has decided to slash prices of petrol and diesel by Rs 2 and Re 1 respectively per litre, effective midnight.

Making the announcement about VAT reduction on petrol and diesel on Tuesday, Finance Minister Sudhir Mungantiwar termed it as a "Diwali gift" to people of the state. The revised rates will be applicable from midnight today, he said.



Currently, After the new rates come into effect, petrol will cost Rs 75.58 per liter and diesel will cost Rs. 59.55 in the state.

Maharashtra charges 25 per cent VAT on petrol in Mumbai, Navi Mumbai and Thane, while the rest of the state pays 26 per cent VAT on it. On diesel, 21 percent VAT is levied in Mumbai, Navi Mumbai and Thane and while rest of the state is charged at 22 percent.