Petrol, diesel: Let’s have a look at states which reduced VAT

Nov. 4: After Centre announced excise duty cut on petrol and diesel by Rs 5 and Rs.10 respectively, some states also reduced Value Added Tax (VAT) on both the fuels. Since states charge local sales tax or VAT not just on the base price but also on the excise duty levied by the Centre, the total incidence of price reduction is higher. The reduction was larger in states with higher VAT.

Assam, Tripura, Manipur, Sikkim, Karnataka, Gujarat , Puducherry and Goa reduced price of petrol and diesel by Rs.7 per litre. Uttarakhand reduced VAT on petrol by Rs.2 per litre. Uttar Pradesh reduced VAT by Rs.7 per litre on petrol and Rs.2 per litre on diesel. Bihar cut VAT on petrol by Rs.1.30 per litre and diesel by Rs. 1,90 per litre. Odisha govt announced a reduction of Rs.3 per litre on petrol & diesel.