Meranews, Ahmedabad: With the Gujarat elections round the corner; the state government is not leaving any stone unturned to woo the citizens. In order to deal with the anti-incumbency, seems to be growing in the public at large, Gujarat government is planning to reduce the Value Added Tax (VAT) on petroleum products soon.
Following union petroleum minister, Dharmendra Pradhan’s request to reduce VAT on petroleum products to the states, Gujarat chief minister Vijay Rupani announced reduction of VAT in Gujarat. The effect of the same can be seen in the form of reduction in diesel and petrol prices.
The announcement was made on Wednesday by CM Rupani during BJP's 'Gauvrav Yatra,' going to cover across Gujarat
While the implementation of the announcement is yet to happen, it is to be seen by what percentage will the prices of petrol and diesel be reduced in Gujarat.
The Center has cut the excise duty on petroleum products by Rs2 which has a direct effect on petrol and diesel prices. As per reports, Pradhan had urged the states to proactively reduce the VAT by at least 5 per cent. This can reduce the petrol and diesel prices by almost Rs3.5 per litre.
President of Gujarat Petroleum Dealers’ Association, Arvind Thakkar told Mernews.in, “Currently the petrol and diesel prices in Ahmedabad are Rs 72 and Rs 65 per litre respectively. If the state reduces VAT by 5 per cent it can come down by around Rs 3.5 per litre. It can be considered to be a decent reduction.”
Thakkar also added that the effect of the same can be seen on the public transport fares too as it can be reduced.
It is to be noted that Gujarat changes highest VAT compared to any other state in India. Moreover, VAT was the biggest revenue earner for the state. Thus, reduction in the VAT charges can be considered one of the biggest moves by the government.