Petrol, Diesel Price: Haryana, Odisha to Reduce VAT. List of States Slash Tax after Excise Duty Cut

After the Centre’s decision to cut excise duty on petrol and diesel on the eve of Diwali, several BJP and NDA-ruled states announced to reduce VAT on fuel to further provide relief to consumers.  The Odisha government on Thursday announced VAT reduction of Rs 3 per litre on both petrol and diesel. The new rate will be applicable in the coastal state from the midnight of November 5. The move was aimed at providing relief to common people, who were distressed by the relentless hike in fuel prices, the state government said in a statement.

Haryana government also joined the list of states that had cut VAT on petrol and diesel prices. “On the occasion of Diwali, the central government has announced a reduction in prices of petrol and diesel. Taking it forward, the Haryana government has also reduced the rate of VAT on petrol and diesel in the state. Now, both petrol and diesel in entire Haryana will be cheaper by ₹ 12 per litre,” chief minister Manohar Lal Khattar said in a tweet on November 4.

https://twitter.com/mlkhattar/status/1456115113874706434?s=20

The Centre on Wednesday, in a Diwali bonanza, announced to slash excise duty on petrol and diesel by Rs 5 and Rs 10, respectively. It also urged the states to reduce the VAT on petrol and diesel.

Hailing the central government’s decision to reduce excise duty, Union home minister Amit Shah on Thursday said, “The relief given even after prices increased internationally is a very sensitive decision. I thank Modiji for this.” This “Diwali gift” by the Prime Minister to the country would not only bring relief to the common man but also reduce inflation, home minister added.

https://twitter.com/AmitShah/status/1456126197956374535?s=20

Hours after the announcement, governments of BJP-ruled Assam, Goa, Tripura, Karnataka, Uttarakhand, Manipur, Gujarat, UP and Bihar, where the party is an ally of the ruling government, declared to reduce VAT on fuel.

Goa CM Pramod Sawant announced that his government will reduce an additional Rs 7 on petrol and Rs 7 on diesel, thereby reducing the price of diesel by Rs 17 per litre and petrol by Rs 12 per litre.

Assam CM Himanta Biswa Sarma also declared to reduce VAT on petrol and diesel by Rs 7 each. The Karnataka government joined the league and announced a reduction in VAT by Rs 7 each on petrol and diesel. Following suit, Tripura CM Biplab Deb, Manipur CM N Biren Singh and Gujarat CM Bhupendra Patel announced a cut on VAT by the same amount each on petrol and diesel.

Meanwhile, Uttar Pradesh government officials said that there will be a total reduction of Rs 12 each in petrol and diesel prices, but there wasn’t any official confirmation till the filling of this report.

The NDA-led Bihar government announced to slash VAT, and senior BJP MP Sushil Kumar Modi tweeted: “In Bihar there will be further reduction of state VAT by 1.30 Rs on Petrol and 1.90 Rs on Diesel apart from Rs 5 & 10 Rs reduction on excise duty. Effectively petrol will be cheaper by Rs 6.30 & Diesel by 11.90 in Bihar.”

The Uttarakhand government announced to slash VAT only on petrol by Rs 2 per litre, and as a result, petrol will be cheaper by Rs 7 per litre in the state. Meanwhile, the Haryana government also reduced VAT on petrol and diesel in the state, now both will be cheaper by Rs 12 per litre.

The decision by the state governments will come as a huge relief to the consumers as fuel prices across the country had sky-rocketed in the last few weeks following a global upsurge in crude oil prices.

Read all the Latest India News here