Gujarat becomes first state to reduce fuel VAT
Value Added Tax on fuel price has been reduced in Gujarat by 4%. Gujarat has become the first state in the country to go for the reduction.
After the reduction in VAT, petrol will now be cheaper by ₹2.93 per litre and diesel by ₹2.72 per litre in the state.
The decision was taken after the Centre government reduced the excise duty on fuel by ₹2/litre.
The centre government has asked the states to reduce the VAT on fuel by 5%.
State governments get the most benefit from the fuel prices as they get all of the VAT collection along with 42 per cent of the central excise collections.