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Maharashtra follows Rajasthan and Kerala, slashes VAT on petrol and diesel prices

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Maharashtra follows Rajasthan and Kerala, slashes VAT on petrol and diesel prices

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The Central government on Saturday announced excise duty cut for petrol and diesel by Rs8/litre and Rs6/litre, respectively.

Maharashtra follows Rajasthan and Kerala, slashes VAT on petrol and diesel prices
The Uddhav Thackeray-led Maharashtra government on Sunday slashed VAT on petrol by Rs2.08 and diesel by Rs1.44.
The move follows the Centre's Saturday announcement to reduce excise duty for petrol and diesel by Rs8/litre and Rs6/litre, respectively.
A statement issued by the Maharashtra government said that as a result of the decision, the state exchequer would have to bear an annual loss of Rs2,500 crore. After reducing the VAT on petrol and diesel, the per month revenue from the former would reduce by Rs80 crore, while from the latter by Rs125 crore.
Apart from Maharashtra, even Kerala and Rajasthan announced reduction in tax on fuel, after the Centre's announcement.
Earlier on Sunday, the Rajasthan Chief Minister Ashok Gehlot had tweeted that the state government had reduced VAT on petrol and diesel by Rs2.48/litre and Rs1.16/litre, respectively. He said this would make petrol Rs10.48/litre and diesel Rs7.16/litre cheaper in the state.
On Saturday, the Kerala government announced a cut in petrol and diesel prices by Rs 2.41/litre and Rs 1.36/litre, respectively. "The Union government has partially reduced the huge tax on petrol and diesel. Kerala government welcomes this decision," Kerala Finance Minister K N Balagopal said in a statement on Saturday.
The Karnataka Chief Minister too said his government would consider a further cut in fuel tax. "The Centre's decision has come on Saturday night, let's see, we will consider it," Bommai said on Sunday.
With inputs from PTI
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