On Tuesday, there was some relief from the increasing burden on the pockets of the general public when the prices of petrol and diesel were cut by about Rs. 2. The government reduced its excise and gave the public a little bit. Now, in the festive season, the public can get another good news. Yes, all of you have guessed correctly, the government can cut fuel prices further.
Actually, after the reduction of Rs 2 per liter in fuel excise duty on behalf of the Central Government, the Center wants the state governments to cut the VAT on petrol and diesel by at least 5% so that the cost of inflation should be slightly reduced to the general public.
Reduction of VAT will reduce the cost of fuel and reduce the additional hitting on the public. Now it is hoped that after Gujarat, other BJP ruled states can also reduce the VAT. According to Petroleum Minister Pradhan, Arun Jaitley will soon write a letter to the Chief Ministers of all the states and ask for a reduction of VAT from fuel prices.
"We have cut excise duty actively with the activation of the states," Pradhan told reporters. "Now the reduction of the VAT is in the mind of state govt. Cutting the excise duty of the Center will affect the revenues of 26,000 crores." He further said that "the state is in the highest interest, they take VAT only, and 42 percent in central excise collections. The amount saved after the Center is used for financing the Centrally Sponsored Schemes in the States. is done."
On Tuesday, the central government had cut the excise duty on petrol at Rs 21.48 per liter and diesel by 19.48 rupees per liter, due to which the rates of petrol would be Rs 2 rupee and 50 paise and Rs 25 rupees for diesel.
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