Opposition states follow Centre, reduce VAT on petrol and diesel

However, among BJP-ruled states, Gujarat was unlikely to follow suit and reduce VAT on petrol and diesel, said senior officials

The tax incidence on petrol and diesel in states has come down more than what was announced by the Centre due to the ad valorem structure of the value-added tax (VAT) on fuel.

Following the Centre’s lead, the Chief Minister Ashok Gehlot-led Rajasthan government on Saturday slashed VAT on fuels in the state.

“Due to the reduction in the prices of petrol and diesel by the central government, the state government will reduce VAT by Rs 2.48 per litre on petrol and Rs 1.16 per litre on diesel. With this, petrol will be cheaper by Rs 10.48 and diesel by Rs 7.16