- By Nidhi Giri
- Fri, 28 Jun 2024 05:24 PM (IST)
- Source:JND
Mumbai Petrol Diesel Price News: The Maharashtra government on Friday slashed the value-added tax (VAT) on fuel in the Mumbai metropolitan region, which will make petrol cheaper by 65 paise per litre and diesel by Rs 2.60 per litre. The announcement was made by Deputy Chief Minister and state Finance Minister Ajit Pawar during the presentation of the annual state budget today.
The decision will be applicable only in the Mumbai metropolitan region and the move will cost the state exchequer Rs 200 crore, Ajit Pawar added, as quoted by news agency PTI.
Talking to media persons, Chief Minister Eknath Shinde said, "The VAT cut has been proposed in the budget. Once the budget is passed by the state legislative assembly and the council, the decision will come into effect from July 1."
Recently, petrol and diesel prices in Karnataka were increased by around Rs 3 per litre and Rs 3.5 per litre, respectively, after the Congress ruled state government announced an increase in the sales tax on petroleum products.
The notification by the finance department, dated June 15, effected changes to the Karnataka Sales Tax Act. With this, the sales tax for petrol increased from 25.92 per cent to 29.84 per cent and for diesel, the rise was from 14.34 per cent to 18.44 per cent.
CM Siddaramaiah justified the move saying that the “state's taxes on fuel remain lower than most South Indian states and states with a similar-size economy, like Maharashtra”.
“The value-added tax (VAT) on petrol in Maharashtra is 25 per cent VAT plus Rs 5.12 additional tax, and on diesel, it is 21 per cent. Diesel prices in Karnataka are still lower than in Gujarat and Madhya Pradesh,” he remarked.
“The then double-engine BJP government collaborated to divert Karnataka’s resources to other states. The state BJP government kept reducing the VAT on petrol and diesel while the Central Government increased its own taxes,” he said, attacking the central government.
(With Agency Inputs)
