Maharashtra will reduce the Value Added Tax or VAT on fuel, effectively bringing down the prices in the state, Eknath Shinde said today in one of his first big announcements as the new Chief Minister of Maharashtra. While most of the BJP-ruled states have chopped fuel prices, opposition-ruled states have been unwilling to do so.
In November last year, the Centre had cut excise duty on petrol and diesel by Rs 5 and 10. Most BJP ruled states had also cut down on VAT.
In April, the Opposition-ruled states rejected the Prime Minister’s suggestion to cut VAT on fuel as a relief measure for the people. The Opposition-ruled states, had refused earlier as well, saying it would have a huge negative impact on their revenue.