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Gujarat, Maharashtra reduce VAT on petrol, diesel

Last week finance minister Arun Jaitley had written to all state governments requesting them to reduce taxes on petrol and diesel. Photograph: (Reuters)

WION Web Team New Delhi, Delhi, India Oct 10, 2017, 09.20 AM (IST)

BJP-led governments in Gujarat and Maharashtra today slashed value added tax (VAT) prices on petrol and diesel.

The Gujarat government decided to reduce VAT on petrol and diesel by 4 per cent.

"After the central government's instructions, Gujarat has decided to reduce VAT on petrol and diesel by 4 per cent from today mid-night," chief minister Rupani told reporters at a press meet.

After the reduction in VAT, the price of petrol is set to come down by Rs 2.93 and diesel by Rs 2.72 in the state.

"We have taken this decision in the interest of people," chief minister Rupani said.

Gujarat will be going to polls in December.

Soon after the announcement by the BJP government in Gujarat, CM Fadnavis-led BJP government in Maharashtra too slashed VAT prices on petrol and diesel. 

Maharashtra swiftly reduced VAT on prices of petrol and diesel by Rs 2 and Re 1 respectively, effective midnight tonight. 

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. 

The government had last month brought down excise duty on petrol and diesel by Rs 2 per litre.

Last week finance minister Arun Jaitley had written to all state governments requesting them to reduce taxes on petrol and diesel.

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