Gujarat slashes VAT on fuel prices by 4%

The Bharatiya Janata Party (BJP)-ruled Gujarat has decided to slash the Value-Added Tax (VAT) on fuel prices in the state.

Chief Minister Vijay Rupani, while addressing the media, said, "We are cutting down the VAT on fuel by 4 per cent. Hence, the price of petrol will come down by Rs. 2.93, and that of diesel by Rs, 2.72."

Earlier also, Rupani, expressing compliance with the Centre's directive to slash the VAT on fuel in the states, had said that the state government would reduce taxes on petrol and diesel in the coming two or three days.

The Centre had, last week, announced that the excise duty on fuel would be cut, citing that the move was an attempt to "cushion the impact of rising international prices of crude petroleum oil, and petrol and diesel on their retail sale prices".

A day later, Union Petroleum Minister Dharmendra Pradhan asked the states to slash the Value-Added Tax (VAT) on fuel by 5 per cent.

"We urge the states to take the responsibility just like the Centre did, in direction of the consumer interest, so that they get more relief," Pradhan said.

Madhya Pradesh Chief Minister Shivraj Singh Chouhan also said that the government would have a serious discussion on the topic, and quipped, "Wait for Diwali!"

However, the Kerala Government, led by the Communist Party of India (Marxist) (CPM) and the Indian National Congress (INC) alliance, objected to the directive, citing that the status is unfavourable to implement the move.