New Delhi: Just before Diwali Gujarat and Maharashtra government have decided to slash Value Added Tax (VAT) on prices of petrol and diesel.
Maharashtra became the second state to slash VAT on prices of petrol and diesel by Rs 2 and Re 1 respectively, effective from midnight.
After the new rates come into effect, petrol will cost Rs 75.58 per litre and diesel will cost Rs 59.55 in the state.
Maharashtra charges 25 per cent VAT on petrol in Mumbai, Navi Mumbai and Thane, while the rest of the state pays 26 per cent VAT on it. On diesel, 21 percent VAT is levied in Mumbai, Navi Mumbai and Thane and while rest of the state is charged at 22 percent.
Earlier this morning, the Gujarat government reduced VAT on petrol and diesel by 4 percent.
The announcement was made by state’s Chief Minister Vijay Rupani.
With this rate cut, the price of petrol will come down by Rs. 2.93 and that of diesel by Rs. 2.72 in the state.
The effective price of petrol in Gujarat from mid-night today will be Rs. 66.53 per litre and that of diesel Rs. 60.77 per litre, the chief minister added.