Along with the Center, the state government also provided relief to the common

On Saturday, the central government cut central excise taxes on gasoline and diesel to curb rising inflation due to skyrocketing fuel prices. The excise duty on gasoline was reduced by Rs 8 per litre, and diesel by Rs 6 per litre. As a result, fuel has become cheaper. The decision to cut central fuel excise duties was announced by Finance Minister Nirmala Sitharaman. Therefore, gasoline is cheaper by Rs 9.5 and diesel by Rs 7. After this, the state government has also reduced the value added tax on gasoline and diesel.

After the central government cut the excise tax on gasoline and diesel on Saturday, the state government lowered the value added tax (VAT) on gasoline and diesel by Rs 2.8 paise and Rs 1.44 paise per liter as of May 22, respectively. As a result, around Rs 2,500 crore a year will fall into the state coffers. As a result, gasoline has become cheaper by Rs 11.58 per liter due to tax cuts by the central and state governments. Diesel, on the other hand, has become cheaper by Rs 8.44 per litre.

The reduction of value added tax will cut revenue by Rs 80 crore per month for gasoline and Rs 125 crore per month for diesel. From June 16, 2022 to November 4, 2021, the central government imposed a tax of Rs 7.69 paise and Rs 15.14 paise per liter of gasoline and diesel, respectively. In March and May 2020, the Center increased the special rates on gasoline and diesel by Rs 13 and Rs 16, respectively.

What will the new rates be now?

Gasoline will be available in Mumbai at Rs 109.27 per liter after the implementation of the Maharashtra government’s decision to reduce VAT. The government has decided to cut gasoline by Rs 2.8 per litre. Apart from this, the government has decided to reduce the price of diesel from Rs 1.44 per liter to Rs 95.84 per litre.

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