Mumbai: Following the central government, the Mahavikas Aghadi state government also lowered the fuel tax on Sunday to provide relief to the people.
The central government had on Saturday cut excise duties on gasoline by Rs 8 and diesel by Rs 6. Union Finance Minister Nirmala Sitharaman had suggested that state governments should also cut value added tax. Consequently, since the state government has taken this step, the reduction of value added tax on fuel will place an annual burden of around Rs 2,500 crore on Maharashtra’s coffers.
In a televised meeting with top state ministers on April 27, Prime Minister Narendra Modi suggested that states not governed by the BJP cut fuel taxes. However, at the time, the state government had avoided tax cuts. From that, BJP had targeted the government of Mahavikas Aghadi.
Now, with the increase in fuel prices, the Center has decided to reduce the special tax. After tax cuts by some states, the state government has also given relief to citizens. Now it will be reduced by Rs 2 08 paise. The state duty on diesel was Rs 22.37 paise. It has been reduced by 1 rupee 44 paise. Exactly how much cheaper the state’s fuel will be because of this reduction will be known only after oil companies set rates on Monday, the Gasoline-Diesel Sellers Association said.
The Center had raised the excise tax on fuel last November. The tax increase was criticized because fuel prices increased in the international market. The Center had called on the states to reduce the value added tax so that citizens are not affected. Consequently, the BJP-ruled states had lowered fuel prices. However, states not governed by the BJP avoided tax cuts. From that, Prime Minister Modi had even given a nod to non-BJP governed states.
The gas tax in the state was higher than the central rate. Deputy Chief Minister and Finance Minister Ajit Pawar had promised to reduce the tax. However, as the Center reduced the petrol tax by Rs 8 and the diesel tax by Rs 6, the MVD government had no choice but to cut the taxes. Otherwise, opponents would have had room to criticize. BJP-ruled Karnataka had previously reduced fuel taxes.
‘The entire burden of taxes is in the center.‘
New Delhi: Excise duties on petrol and diesel have been reduced to the ‘Roads and Infrastructure Tax’ (RIC) which is levied on petroleum products. The entire burden of cutting taxes will fall on the central government, Finance Minister Nirmala Sitharaman said on Sunday. She also pointed out that there was no need for states to worry as the basic excise tax on petroleum products payable to states had not been collected.
While other state governments are cutting Rs.
– Devendra Fadnavis, opposition leader
How much tax deduction from which states??
Maharashtra petrol 2 rupees 08 paise, diesel 1 rupees 44 paise
Rajasthan Gasoline – Rs 2 48 paise, Diesel Rs 1 16 paise
Kerala petrol 2 rupees 41 paise, diesel 1 rupees 36 paise