States urged to reduce VAT on petrol and diesel
Buckling under pressure, Centre on Wednesday cut the excise duty on petrol and diesel by Rs 5 and Rs 10 (effective from Thursday) respectively to bring down retail rates from record highs.
The announcement comes on the eve of Diwali which will help bring down the skyrocketing prices of fuel and provide some relief to the common man battling inflation. “Government of India has taken a significant decision of reducing Central Excise Duty on Petrol & Diesel by Rs 5 and Rs 10 respectively from tomorrow (Thursday). Prices of petrol and diesel will thus come down accordingly,” an official statement said.
Farmers have, through their hard work, kept the economic growth momentum going even during the lockdown phase and the massive reduction in excise on diesel will come as a boost to them during the upcoming Rabi season, it added. In recent months, crude oil prices have witnessed a global upsurge. Consequently, domestic prices of petrol and diesel had increased in recent weeks, exerting inflationary pressure, it said.
Driven by the enterprising ability of India’s aspirational population, the Indian economy has witnessed a remarkable turnaround post the COVID-19 induced slowdown. All sectors of the economy – be it manufacturing, services or agriculture – are experiencing significant upward economic activity.
To give a further fillip to the economy, the Government of India has decided to significantly reduce the excise duty on diesel and petrol, it said.
The reduction in excise duty on petrol and diesel will also boost consumption and keep inflation low, thus helping the poor and middle classes. Today’s decision is expected to further spur the overall economic cycle.
States are also urged to commensurately reduce VAT on Petrol and diesel to give relief to Consumers, the Centre said.
Seven states cut VAT
Seven BJP-ruled states– Assam, Tripura, Manipur Karnataka, Goa, Himachal Pradesh and Uttarakhand have announced additional cuts in prices of petrol and diesel.
Assam, Tripura, Manipur, Karnataka and Goa have reduced the prices of both the fuel by Rs.7 per litre and Uttarakhand by Rs. 2.
Himachal Pradesh government also decided to issue a notification.