Petrol Price in Madhya Pradesh: Chief Minister cuts back 3% Value-Added Tax

Petrol Price in Madhya Pradesh: Chief Minister cuts back 3% Value-Added Tax

The decision came after a meeting of the state's Finance Minister Jayant Kumar Malaiya with Chief Minister Shivraj Singh Chouhan earlier in the day.

After Gujarat and Maharashtra, Madhya Pradesh became the third BJP-ruled state to slash value added tax (VAT) on petrol and diesel.While VAT on petrol has been reduced by 3%, the same on diesel has gone down by 5%.

The VAT on diesel has been reduced by 5 per cent while that on petrol by 3 per cent, said Chief Minister Shivraj Singh Chouhan as quoted in a tweet by news agency Asian News International. Earlier, Gujarat, Maharashtra and Himachal Pradesh had announced cut n fuel. "Now it is up to state governments if they are concerned with the issue (to cut sales tax or VAT)", he had said. Furthermore, the government has still not removed the cess of Rs 4 per litre on petrol and Rs 1.50 per litre on diesel. Oil minister Dharmendra Pradhan too has been pitching for inclusion of petrol, diesel, jet fuel, natural gas and crude oil in the GST regime as it would ease the tax burden of oil and gas companies which at present are subjected to two streams of taxation, GST and VAT.

Mungantiwar said the new rates on petrol and diesel will be effective from Wednesday. "But the BJP state government treats petrol and diesel as a profit-making venture levying a hefty Value-Added Tax of 31% on petrol and 27% in diesel", Mishra said. The state would try to make up the revenue loss by adopting austerity measures, he said. "While base price of petrol and diesel in Bihar stands at INR 55 a litre, the same is INR 51 a litre in Jharkhand".