Maharashtra Chief Minister Eknath Shinde on Monday said that the state government will reduce Value Added Tax (VAT). petrol and diesel. decision to reduce tub The state cabinet will be taken up on fuel, Shinde informed the Legislative Assembly while replying to a debate after winning the floor test.
Petrol in Mumbai currently costs Rs 111.35 per liter and diesel is priced at Rs 97.28 per liter. Petrol price in Mumbai is the highest in the country.
The Maharashtra government had at the end of May cut the state-imposed tax on petrol and diesel by Rs 2.08 per liter and Rs 1.44 per litre. This step was taken after the central government on May 21 announced a cut of Rs 8 per liter on petrol and Rs 6 per liter on diesel. The Union Finance Minister had also urged the states to follow suit by cutting state duty on vehicle fuel.
Explaining the decision, the Finance Minister had said that the reduction in excise duty has been done entirely in the Road and Infrastructure Cess (RIC). “The original ED which is shareable with the states has not been touched. Hence, the entire burden of these two fee cuts (done in November 21 and yesterday) is borne by the Centre,” she said.
Fuel prices in India remained stable for the 43rd consecutive day on Monday. Since the Central Government had cut excise duty on 27th May, Petrol and Diesel Prices have remained stable. After this move, apart from Maharashtra, Kerala and Rajasthan also cut the prices of petrol and diesel by reducing VAT.
Earlier in November last year also, the central government had reduced the excise duty on petrol and diesel by Rs 5 per liter and Rs 10 per liter respectively. Most of the BJP ruled states had also cut VAT.
However, in April, opposition-ruled states rejected Prime Minister Narendra Modi’s suggestion to cut VAT on fuel as a relief measure for the people. Opposition-ruled states had earlier also refused, saying it would have a huge negative impact on their revenues.
Finance Minister Nirmala Sitharaman said last week that the government would review the new taxes imposed on crude, diesel and ATF every fortnight, based on international prices. He said these are “extraordinary times” and oil prices are unbridled internationally. Sitharaman said, ‘We do not want to discourage exports, but want to increase domestic availability.
Maharashtra Chief Minister Eknath Shinde on Monday won the crucial floor test in the state assembly on the last day of the two-day special session of the House. In the 288-member House, 164 MLAs voted for the confidence motion, while 99 voted against it. Three MLAs abstained from voting, while 21 MLAs, including Congress’s Ashok Chavan and Vijay Wadettiwar, remained absent during the trust vote. Last month, Eknath Shinde had started a rebellion against Shiv Sena.
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