Maharashtra may cut VAT on petrol, diesel, suffer Rs 2,600 cr revenue loss

After Gujarat, the Maharashtra government may opt for a Rs 2 per litre cut in value-added tax (VAT) on petrol and diesel, adding to the losses of the debt-ridden state.

BJP-ruled Maharashtra levies 46.52 per cent VAT (47.64 per cent in Mumbai) on petrol, the highest in the country. Moreover, a surcharge of Rs 11 per litre and Rs 2 per litre is already collected on petrol and diesel, besides the VAT.

After the implementation of the goods and services tax (GST), several states have increased the value-added tax, leading to a rise in fuel prices.

VAT cut impact