The Maharashtra government is expected to monthly lose ₹80 crore on petrol and ₹125 crore on diesel following the reduction in VAT. The government will bear a revenue loss of ₹2,500 crore annually.
In Mumbai after the reduction of excise duty and state's decision to reduce VAT, one litre of petrol will cost ₹109.27 and a litre of diesel ₹95.84
Chief Minister Uddhav Thackeray on Saturday had claimed that the Centre’s move to reduce excise duty on petrol by ₹8 per litre and on diesel by ₹6 per litre was not enough.
Finance Minister Nirmala Sitharaman on Saturday announced an ₹8 per litre cut in excise duty on petrol and ₹6 a litre on diesel.
Earlier, the Rajasthan government reduced Value-added tax (VAT) on petrol by ₹2.48 per litre and diesel by ₹1.16 per litre. With this, petrol will be cheaper by ₹10.48 and diesel by ₹7.16 per litre in the state.
The Kerala government also cut taxes on petrol and diesel by ₹2.41 and ₹1.36 respectively.
Karnataka Chief Minister Basavaraj Bommai on Sunday said that his government will consider further cut in fuel tax.
