AHMEDABAD: The Gujarat executive on Wednesday indicated that it has no quick plans to scale back the Value Added tax (VAT) on petrol and diesel, claiming that such tax earnings is the important thing source of income.
Talking to journalists here, Gujarat Deputy Chief Minister Nitin Patel stated that the state executive had already provided a relief to the folks by way of decreasing VAT on fuel closing year.
"Fuel prices change as per the international crude prices. There are many states where VAT is higher than what it is in Gujarat today. VAT on fuel is the main source of income for us," Patel stated in keeping with a question.
Presently, the state executive fees 20 according to cent VAT and 4 according to cent cess on each petrol and diesel.
"Gujarat is the only state which had reduced VAT some time back to give relief to the citizens. Though VAT on fuel in many states is higher than Gujarat, these states have not reduced this tax like we had done," Patel, who also handles Finance portfolio, stated.
He added that despite the fact that the prices are increasing, the usage of petrol and diesel is not decreasing.
Putting the onus at the Centre, he stated, "Let's hope that something fruitful in this regard transpires in today's meeting between Union Petroleum minister Dharmendra Pradhan and oil companies".
In October closing year, the state executive had lowered the VAT on petrol and diesel by way of four according to cent. Prior to that, the state executive used to charge 24 according to cent VAT on petrol and diesel.
Talking to journalists here, Gujarat Deputy Chief Minister Nitin Patel stated that the state executive had already provided a relief to the folks by way of decreasing VAT on fuel closing year.
"Fuel prices change as per the international crude prices. There are many states where VAT is higher than what it is in Gujarat today. VAT on fuel is the main source of income for us," Patel stated in keeping with a question.
Presently, the state executive fees 20 according to cent VAT and 4 according to cent cess on each petrol and diesel.
"Gujarat is the only state which had reduced VAT some time back to give relief to the citizens. Though VAT on fuel in many states is higher than Gujarat, these states have not reduced this tax like we had done," Patel, who also handles Finance portfolio, stated.
He added that despite the fact that the prices are increasing, the usage of petrol and diesel is not decreasing.
Putting the onus at the Centre, he stated, "Let's hope that something fruitful in this regard transpires in today's meeting between Union Petroleum minister Dharmendra Pradhan and oil companies".
In October closing year, the state executive had lowered the VAT on petrol and diesel by way of four according to cent. Prior to that, the state executive used to charge 24 according to cent VAT on petrol and diesel.
No plans to reduce VAT on fuel, indicates Guj min
![No plans to reduce VAT on fuel, indicates Guj min]()
Reviewed by Kailash
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May 24, 2018
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