Gujarat first state to slash VAT on fuel prices

Ahead of the state assembly elections, the state government has cut value-added tax (VAT) on petrol and diesel, making it the first state to follow the Centre's directions to do so.

Speaking at an event in Una as part of the 'Gaurav Yatra', Gujarat chief minister Vijay Rupani said that the government was set to reduce taxes on the retail fuel. Gujarat government is likely to make an announcement soon. 

Recently, the union government cut basic excise duty on petrol and diesel by Rs 2 a litre.

Union oil minister Dharmendra Pradhan had recently stated that retail fuel prices were set to ease out, following which the Centre asked state governments to cut VAT on petrol and diesel to ease rates.

Gujarat currently levies a 28.96 per cent VAT on petrol and diesel.