Petrol, Diesel Price Drop: UP, Kerala, List of Other States Who Have Cut VAT on Fuel
Petrol, Diesel Price Drop: UP, Kerala, List of Other States Who Have Cut VAT on Fuel
At the time of announcing the reduction, finance minister Nirmala Sitharaman had urged states to also reduce their VAT charges on petrol and diesel to provide further relief to citizens.

Petrol, Diesel Price Drop: The central government, in a bid to provide some relief to the common people, have reduced the excise duty on petrol and diesel prices. The prices of petrol and diesel had been soaring before the Centre stepped in last week, and had given a subsequent rise in the overall inflation in the country. At the time of announcing the reduction, finance minister Nirmala Sitharaman had urged states to also reduce their VAT charges on petrol and diesel to provide further relief to citizens.

“I wish to exhort all state governments, especially the states where the reduction wasn’t done during the last round (November 2021), to also implement a similar cut and give relief to the common man,” she had tweeted on May 21, Saturday.

Following the Centre’s cue, several states also jumped in to announce that VAT on petrol and diesel had been reduced. Uttar Pradesh was the latest state to announce such a cut.

Here are the states that reduced VAT on petrol and diesel following Centre’s excise duty cut

1. Kerala: The Kerala government was one of the first states to acknowledge the Centre’s decision. On May 21, Kerala finance minister KN Balagopal said in a statement that as part of the Centre’s duty cut on petrol and diesel, the state government will reduce VAT on the auto fuels. “The central government has partially reduced the massively increased petrol/diesel tax. The state government welcomes this. As part of this, the state government will reduce petrol tax by Rs 2.41 and diesel tax by Rs 1.36.”

2. Uttar Pradesh: Uttar Pradesh was the latest state to announce a reduction of VAT on petrol and diesel prices. Chief minister Yogi Adityanath on Wednesday informed the state assembly that VAT imposed on diesel and petrol was cut by Rs 1.03 and 1.40 per litre respectively, as part of the Centre’s excise duty cut on the auto fuels.

3. Rajasthan: “Due to the reduction in the prices of petrol and diesel by the central government, the state government will reduce VAT by Rs 2.48 per liter on petrol and Rs 1.16 per liter on diesel. With this, petrol will be cheaper by Rs 10.48 and diesel by Rs 7.16 per liter in the state,” chief minister Ashok Gehlot had tweeted after the Centre’s excise duty cut on petrol and diesel.

4. Maharashtra: The Maharashtra government announced a slash of Value Added Tax or VAT on petrol and diesel on Sunday. The state government has reduced VAT on petrol by Rs 2.08 per litre and on diesel by Rs 1.44 per litre, it said in a notification. This decision would cost the state exchequer an annual revenue loss of Rs 2,500 crore, it added.

5. Odisha: According to a report  by moneycontrol.com, the Odisha government has reduced VAT on petrol and diesel by Rs 2.23 and Rs 1.36 a litre, as a result of the excise duty cut.

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