BJP-ruled Maharashtra levies 46.52 per cent VAT (47.64 per cent in Mumbai) on petrol, the highest in the country
After Gujarat, the Maharashtra government may opt for a Rs 2 per litre cut in value-added tax (VAT) on petrol and diesel, adding to the losses of the debt-ridden state.
BJP-ruled Maharashtra levies 46.52 per cent VAT (47.64 per cent in Mumbai) on petrol, the highest in the country. Moreover, a surcharge of Rs 11 per litre and Rs 2 per litre is already collected on petrol and diesel, besides the VAT.
After the implementation of the goods and services tax (GST), several states have increased the value-added tax, leading to a rise in fuel prices.
VAT cut impact on Maharashtra
The move will not only hit Maharashtra’s exchequer but also lead to a revenue loss of Rs 2,600 crore, reported Indian Express.
Farm loans: The cost of waiving farm loans will shoot Maharashtra’s debt stocks to Rs 4.13 lakh crore in FY17, the report added. Therefore, the cut will further aggravate the state’s burden to revive economy.
Gujarat becomes the first state to cut VAT
Gujarat, which currently levies 28.96 per cent VAT on petrol and diesel, became the first state to cut VAT.
Most BJP-ruled are likely to follow Centre’s move, even though Devendra Fadnavis government had earlier rejected Centre’s suggestion for the same. Even Madhya Pradesh, which levies 38.79 per cent VAT on the fuel, indicated considering the option. However, non-BJP ruled states like Kerala and Odisha opposed against lowering of taxes.
Govt cuts excise duty on petrol, petrol
For the first time since Narendra Modi came to power in 2014, the NDA government cut excise duty on petrol and diesel by Rs 2 per litre to cushion the impact of rising international crude prices. The Centre took a hit of Rs 26,000 crore in revenue in the cut in excise duty….READ MORE
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