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The Maharashtra government on Sunday slashed VAT by Rs 2.08 on petrol and Rs 1.44 on diesel. The announcement came after the Central government slashed excise duty yesterday on fuel. The state government is expected to monthly lose Rs 80 crore on petrol and Rs 125 crore on diesel following the reduction in VAT. The government will bear a revenue loss of Rs 2,500 crore annually.
The Chief Minister’s Office in a statement said that during June 16,2020 and November 4, 2021 the Centre was charging the excise duty of Rs 7.69 per litre on petrol and Rs 15.14 per litre on diesel. Between March and May 2020, the Centre had increased excise duty by Rs 13 on petrol and Rs 16 per litre on diesel.
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