Gujarat first state to slash VAT on fuel prices

 

Ahead of the state assembly elections, the state government has cut value-added tax (VAT) on petrol and diesel, making it the first state to follow the Centre’s directions to do so.

Recently, the union government cut basic excise duty on petrol and diesel by Rs 2 a litre.

Union oil minister Dharmendra Pradhan had recently stated that retail fuel prices were set to ease out, following which the Centre asked state governments to cut VAT on petrol and diesel to ease rates.

Gujarat currently levies a 28.96 per cent VAT on petrol and diesel.