Maharashtra government slashes VAT on petrol and diesel

A day after the Centre reduced excise duty on fuel, the Shiv Sena-led Maharashtra government on Sunday slashed the VAT on petrol by Rs 2.08 per litre and diesel by Rs 1.44 per litre. A statement issued by the government said the state exchequer will have to bear an annual loss of Rs 2,500 crore as a result of this decision.

After reducing the VAT on petrol and diesel, the per month revenue from petrol will reduce by Rs 80 crore, while that from diesel by Rs 125 crore.

The central government on Saturday announced a record Rs 8 per litre cut in excise duty on petrol and Rs 6 reduction on diesel.