The Gujarat government will cut down on state-related taxes on petrol and diesel,CM Vijay Rupani was quoted as saying on TV.
Similarly, Madhya Pradesh is likely to announce a Diwali gift for consumers by slashing petrol and diesel prices this week.Kerala said a reduction was unfeasible, while Odisha felt the request was unjustified.
BJP-ruled Gujarat became on Thursday the first state to say it would cut VAT on petrol and diesel after the Centre urged states to cut their levies on fuels by 5%.
Other BJP-ruled states, such as Madhya Pradesh, Chhattisgarh, Uttarakhand, and Jharkhand, and states where it shares power, like Bihar, seemed likely to follow suit with cuts or seriously consider the option of doing so.
“Apart from the central taxes that have been reduced, the Gujarat government will cut down on state-related taxes on petrol and diesel,” chief minister Vijay Rupani was quoted as saying on TV.
Similarly, Madhya Pradesh was likely to announce a Diwali gift for consumers by slashing petrol and diesel prices this week. “We are seriously considering reducing VAT,” CM Shivraj Singh Chouhan said on Thursday.
State finance minister Jayant Malaiya said he would attend a GST Council meeting this week “where I will discuss the plan to cut 5% VAT on petrol and diesel”.
But Haryana, though a BJP state, appeared in no mood to cut taxes. “Before any further review of VAT on fuel in the state, stabilisation of GST is more necessary,” Haryana finance minister Captain Abhimanyu said, adding the state already had the lowest VAT on fuel in the country. He said they would wait for the impact of GST to stabilise in Haryana.
Kerala said a reduction was unfeasible, while Odisha felt the request was unjustified. Tamil Nadu declined to react, while Punjab finance minister Manpreet Badal said his state didn’t need to effect cuts because, though Centre had hiked excise duty on fuel 11 times in 36 months, the state had not increased VAT.
Kerala FM Thomas Isaac ruled out the possibility of a VAT reduction, saying the state government could not accept the extra burden that would be created by lowering VAT on the fuels as Kerala had already been crippled by the heavy burden of GST.
He said the Centre’s decision to cut excise duty by Rs 2 was an eyewash.