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Centre will ask states to cut VAT on petrol, diesel: MoS Finance Bhagwat Karad

Karad said that taking a cue from the Centre, it is now for state governments to provide some tax relief.

Union Minister of State for Finance Bhagwat Karad Thursday said the prices of diesel and petrol will decline further provided state governments reduce the Value Added Tax (VAT). The Centre will write letters to all state governments to reduce VAT on petrol and diesel prices to provide further relief to consumers in their respective states, he said.

“The Centre has taken the decision to reduce excise duty on petrol and diesel prices. The decision will be implemented from Thursday. The decision will bring down petrol and diesel prices per litre by Rs 5 and Rs 10, respectively,” Karad said while speaking to the media.

Karad said that taking a cue from the Centre, it is now for state governments to provide some tax relief. “The finance ministry will write letters to all state governments to reduce VAT. The Centre wants states to reduce the prices of petrol and diesel by at least Rs 7 per litre. This would help to bring the petrol prices down by Rs 12 per litre and diesel Rs 17 per litre.

The prices of petrol and diesel have seen a steep rise since May 2021. The prices of petrol had crossed Rs 100 this year. The petrol price in Delhi was Rs 110.04 per litre and Rs 115.85 per litre in Mumbai . Whereas diesel price in Delhi was Rs 98.42 per litre and Rs 106.62 per litre in Mumbai.

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