Business Today
Uttarakhand fourth state to cut VAT, cess on petrol and diesel
The Uttarakhand state government will slash the VAT and cess on petroleum products by 2 per cent each.
Uttarakhand fourth state to cut VAT, cess on petrol and diesel

Uttarakhand has decided to reduce value-added tax and cess on petrol and diesel. The state government will slash the VAT and cess on petroleum products by 2 per cent each. Uttarakhand Finance Minister Prakash Pant, in a statement to news agency ANI, confirmed the decline in charges.

Uttarakhand has reduced VAT and cess on petrol and diesel on the back of similar rate cuts by Maharastra, Gujarat , and Himachal Pradesh, becoming the fourth state in India to do so. The rate cuts were put into effect after Centre eased excise duty on petrol and diesel in light of soaring fuel prices.

Following this, Finance Minister Arun Jaitley had urged the states to reduce VAT on petrol and diesel in order to pass on the benefits from the excise duty cut to the customers.

Meanwhile, Ministry of Finance came up with recommendations pertaining to GST rate structure for petroleum and oil sector. The proposals were drafted during the 22nd meeting of the GST Council in order to reduce cascading effect of taxes on petrol, diesel, jet fuel, natural gas and crude oil, as well as incentivise exploration and production of petroleum and oil and downstream sector.

 

Get latest news & live updates on the go on your phone with our News App. Download The Business Today news app on your device
More from BIZ WRAP