ALSO READMaharashtra may cut VAT on petrol, diesel, suffer Rs 2,600 cr revenue loss Gujarat first state to slash VAT on fuel prices Cheaper fuel on cards: Centre to urge states to cut VAT on petrol, diesel Govt rules out cutting taxes on petrol, diesel States agree to cut VAT on petrol products in relief for manufacturers
Because of this move, the state government will suffer a loss of Rs 2,316 crore annually.
"But we have taken this decision in the interest of people," Rupani said.
The lowering of tax in the poll-bound Gujarat follows Union Finance Minister Arun Jaitley recently writing to all state governments nudging them to reduce taxes on petrol and diesel.
The Centre had recently brought down excise duty on petrol and diesel by Rs 2 per litre.