Petrol Price in Madhya Pradesh: Chief Minister cuts back 3% Value-Added Tax

Madhya Pradesh govt cuts VAT on petrol and diesel

Madhya Pradesh govt cuts VAT on petrol and diesel

Madhya Pradesh government has chose to reduce three per cent Value-Added Tax on petrol and five per cent Value-Added Tax on diesel.

Leader of Opposition Ajay Singh said the tax cut on fuel prices is only a "deception" as even after the reduction, Madhya Pradesh will still remain the state to pay the highest for petrol and diesel. The VAT on diesel is reduced by 5 per cent. Earlier, Gujarat, Maharashtra and Himachal Pradesh had announced cut n fuel. "New prices will come into effect from midnight". According to ANI, Madhya Pradesh Shivraj Singh Chouhan said that the state has reduced 3% retail Value-Added Tax on petrol and 5% on diesel. "Moreover, the additional cess of Rs 1.50 per litre has also been withdrawn", state Finance Minister Jayant Malaiya announced after a meeting with Chief Minister Shivraj Singh Chouhan.

Mungantiwar said the new rates on petrol and diesel will be effective from Wednesday.

The move is expected to cause a revenue loss of an estimated Rs 2,000 crore per annum to the state exchequer, official sources said.

The uptick in petrol and diesel prices weighed heavy on consumer inflation in September, contributing to 5.56 per cent of the index. "While base price of petrol and diesel in Bihar stands at INR 55 a litre, the same is INR 51 a litre in Jharkhand. During the UPA government regime under Prime Minister Manmohan Singh, the worldwide crude oil prices were as high as $72 to $75 per barrel and yet prices of fuel were not as high as it is today", Mishra argued.