Poll-Bound Gujarat First State to Cut VAT to Reduce Petrol Prices

Chief Minister Vijay Rupani has not clarified how much the VAT will be reduced by.

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Gujarat became the first state to respond to Oil Minister Dharmendra Pradhan’s appeal to states to cut VAT on petroleum products to further reduce petrol and diesel prices. On Wednesday, the Minister for Petroleum and Natural Gas had urged states to slash VAT amid criticism for skyrocketing petrol and diesel prices.

His appeal came a day after the Centre took the decision to cut excise duty on petrol and diesel by Rs 2. Poll-bound home state of PM Modi, Gujarat, was the first to comply as Chief Minister Vijay Rupani announced the decision on Wednesday, as The Times of India reported.

Following the central government’s decision to reduce excise duty on petroleum products, the Gujarat government will also reduce VAT rates. This will make petrol and diesel cheaper. The officials concerned have been given instructions to prepare a draft proposal. The decision will be implemented in 2-3 days.

Vijay Rupani, Gujarat CM

However, Rupani did not clarify how much the VAT will be reduced by.

The VAT is implemented by states as an ad valorem duty, which raises every time there’s a price rise.

After the Oil Minister, Finance Minister Arun Jaitley had also urged states to reduce the VAT.

Also Read: After Oil Min, Jaitley Asks States to Cut VAT on Petrol, Diesel