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12 October 2017, 12:57 | Terri Saunders
Petrol drops by 2 diesel by 1 per litre
Few were as surprised as the Uttarakhand finance minister on Monday, when chief minister Trivendra Singh Rawat's office tweeted about an impending cut in petro taxes to provide the public with some much-needed relief.Finance minister Prakash Pant shot down any such possibility minutes later, clarifying that there was no question of taking a step like this when the government had reduced value-added tax (VAT) and cess on petrol and diesel only recently.
Stalin recalled that in the past, during certain rate revisions of the products, the M Karunanidhi-led DMK government had in the past reduced taxes on petrol and diesel in the state.
The lowering of tax in the state follows Union finance minister Arun Jaitley recently writing to all state governments nudging them to reduce taxes on petrol and diesel.
While Karnataka Chief Minister Siddaramaiah ruled out any rollback in VAT on auto fuel, Additional Chief Secretary (Finance) I.S.N. Prasad said he doubted if all States would agree for GST, during the next at least a year or so until the new tax regime stabilises. Looking at the backlash over high petrol prices however, the Centre has slashed tax on petrol by Rs 1.17 per litre. "This is our Diwali gift to the masses", Mungantiwar said. The net reduction in petrol and diesel prices will be around Rs 2.33 per litre and Rs 1.25 per litre respectively in Maharashtra, said All India Petrol Dealers Association spokesperson Ali Daruwala. "If the price of fuel has to be reduced further, then it will have to be done by the Centre", he said.
With this rate cut, the effective price of petrol in Gujarat from midnight of 10 October will be Rs66.53 a litre and that of diesel Rs60.77. Meanwhile Uttarakhand has proposed a 2 percent cut in Value-Added Tax and another 2 percent in cess.
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