After govt reduces excise duty, states slash VAT on fuel

After the Centre reduced excise duty on fuel on Wednesday, several BJP-ruled states announced a further reduction of Rs 7 per litre on Value Added Tax (VAT) on both petrol and diesel. The Centre reduced the excise duty on petrol by Rs 5 and that on diesel by Rs 10, to be effective from Thursday.

In a tweet late in the evening, Goa Chief Minister Pramod Sawant wrote, “The Modi Govt. has given a great Diwali gift to all Indians by announcing reduction in Excise Duty on Petrol and Diesel… In addition, Government of Goa shall 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 announced a reduction in VAT on both the fuels by Rs 7 per litre with immediate effect. Chief Minister Himanta Biswa Sarma announced the state government’s decision on Twitter. “Heartening to learn Central Govt decision to reduce excise duty on petrol and diesel. In consonance with the decision of Honble PM @narendramodi, I am pleased to announce that Assam Govt will also reduce VAT on petrol and diesel each by Rs 7/- with immediate effect,” he said. On October 29, Sarma had said his government was ready to cut its share of taxes on fuel if the high rates continue.

A statement from Gujarat Chief Minister Bhupendra Patel’s office said the state government has decided to reduce the VAT on petrol/diesel in the state following Central government decision to reduce excise duty on it.

Tripura Chief Minister Biplab Kumar Deb tweeted, “Following Hon’ble PM Shri @narendramodi Ji led central govt’s decision on reduction of excise duty on petrol & diesel, #Tripura govt has also decided to reduce petrol & diesel cost by Rs 7 from tomorrow…After today’s decision Petrol & Diesel will cost Rs 98.33/lt & Rs 85.63/lt respectively in Agartala.”

Announcing his government’s decision, Manipur Chief Minister N Biren Singh tweeted, “Heartily welcome PM @narendramodi Ji’s decision to reduce excise duty on petrol & diesel as a gift to the people of this Nation on this Diwali. I’m also please to announce that the Govt. of Manipur will also reduce VAT on petrol and diesel each by Rs 7/- with immediate effect.”