Earlier in the day, the Gujarat government had decided to reduce the value added tax (VAT) on petrol and diesel by 4 per cent, Chief Minister Vijay Rupani said. "After the central government's instructions, Gujarat has decided to reduce VAT on petrol and diesel by 4 per cent from today midnight," Mr Rupani said.
The Centre had last week slashed excise duty on petrol and diesel by Rs 2 per litre. Finance Minister Arun Jaitley had said that the excise duty on petrol and diesel was reduced to give relief from relentless increase in prices and leave more money in hands of consumers. "Now it is up to state governments if they are concerned with the issue (to cut sales tax or VAT)," Mr Jaitley had said.
The Maharashtra government levies a 46.52 per cent VAT (47.64 per cent in Mumbai) on petrol - the highest in the country. (With agency inputs)