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MP cuts diesel VAT by 5%, petrol VAT by 3%

(MENAFN- NewsBytes)

MP cuts diesel VAT by 5%, petrol VAT by 3%
13 Oct 2017

The MP government has cut the value added tax (VAT) on fuel products. It reduced diesel VAT by 5% and petrol VAT by 3%. CM Shivraj Chouhan said the new prices will be effective from midnight.

The move came after Oil Minister Dharmendra Pradhan urged state governments to reduce the tax burden on consumers.

Find out more details below.

Centre takes the initiative to relieve consumers

The Centre recently cut excise duty on diesel and petrol by Rs. 2 per litre. The government was facing pressure from people as fuel prices were being kept high while global prices remained low.

Subsequently, Pradhan asked every state, which has different VAT rates on fuel, to reduce 5% VAT for consumers to benefit. He exclaimed that some states levy 24-26% VAT on fuel.

Following Centre's directive, many states followed

After the Centre gave this directive, Maharashtra reduced petrol and diesel prices by Rs. 2 and Rs. 1, respectively.

Gujarat reduced VAT by 4%, Uttarakhand by 2% and Himachal by 1%. MP is the fifth state to reduce VAT on petroleum products.

Delhi and Kerala who were at the forefront for demanding a cut in duties might be next.

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