Gujarat cuts down fuel Vat by 4%

Gujarat government cuts down 4% VAT on petrol and diesel across the state. The Gujarat government on Tuesday announced a 4 percent reduction in VAT on the petrol and diesel. Now the petrol price will get cheaper by Rs 2.93 while diesel by Rs 2.72 across Gujarat. It is the first state to cut down the VAT of petrol and diesel after the central government asked states to hike the prices of the fuel. As per the reports, the new fuel prices in Gujarat to be commenced from the midnight of Tuesday tomorrow. The fuel prices in Gujarat cut down 4% VAT, however, earlier this month the Centre has reduced the excise duty on petrol and diesel by Rs 2.

The reduction of the Value added tax comes just before the Diwali festival in the Gujarat where Assembly election to be conducted by the end of this year. ALthough it is a kind of political strategy for the upcoming elections.

As per the reports, the Oil Minister Dharmendra Pradhan asked the state government to cut down VAT by 5 percent on the petrol and diesel after the centre has trimmed the excise duty on the fuel by Rs 2. He stated that the states are the biggest beneficiaries of the revenues generated from petrol and diesel. The reduction in fuel VAT will be the beneficiary move for the Gujarat people.