Maharashtra -
2%
VAT cut on diesel, kerosene from Friday
The 2% cut on value added tax (VAT) on both diesel and
kerosene by the Maharashtra state government will be
applicable beginning Friday. On June 29, the state
government had announced a cut on VAT after the price
hike announced by the Centre. This meant a reduction on
VAT on diesel in areas such as Mumbai, Thane and Navi
Mumbai from 26% to 24% and from 23% to 21% in the rest
of the state which averages to a 72p reduction for every
litre of diesel. Similarly, kerosene will come down by
28p per litre with the VAT being reduced from 5% to 3%.
Chief minister Prithviraj Chavan pointed out that this
VAT reduction had resulted in a revenue loss of around Rs438 crore in the state.
The Centre’s decision to give tax exemptions on excise and customs to oil
companies in the public sector put a Rs49,000 crore burden on the central
government, of which an additional burden of Rs820 crore has been passed on to
the state, he said. Right now the state collects Rs8894 crore from taxes on
petrol and diesel annually.
