Chief Minister Eknath Shinde said the slash in Value Added Tax (VAT) will cost the state exchequer Rs 6,000 crore a year, but it will bring down the overall inflation.
Mumbai: The Chief Minister Eknath Shinde-led Maharashtra government on Thursday decided to slash Value Added Tax (VAT) on fuel, leading to a slash in prices of petrol and diesel in Maharashtra.
After the move, petrol in Mumbai is expected to be Rs 5 cheaper at Rs 106 a litre and diesel Rs 3 cheaper at Rs 94 per litre.
Shinde said the slash in Value Added Tax (VAT) will cost the state exchequer Rs 6,000 crore a year, but it will bring down the overall inflation. “When the Centre cut the excise duty in May to reduce the fuel prices, it had asked the states to cut their taxes too. But the previous state government did not do so. We’ve now taken that step,” Shinde said.
Hailing the move, Maharashtra Deputy Chief Minister Devendra Fadnavis said, “Great relief to Maharashtrian & Marathi Manus ! Happy to announce that new Government under CM Eknathrao Shinde has decided to reduce Petrol & Diesel prices by ₹5/litre & ₹3/litre respectively.”
He added, “This is our step towards the appeal made by Hon PM @narendramodi ji for benefit to common citizens. State will carry burden of ₹6000 crore for this decision.”
Apart from the decision to build the Metro car shed in Aarey Colony, the decision to slash VAT on fuel is probably the biggest that was taken by the Eknath Shinde-led Maharashtra government.
Recently, a faction of Shiv Sena rebelled against Chief Minister Uddhav Thackeray and forced him to quit the Maha Vikas Aghadi coalition with Congress and Nationalist Congress Party.