InvestorQ : Why have only some states cut the VAT after the central government cut excise on petrol and diesel?
Sam Eswaran made post

Why have only some states cut the VAT after the central government cut excise on petrol and diesel?

Answer
image
Tisha Malhotra answered.
4 weeks ago
Follow

After a long wait, the central government relented and announced cuts in excise duty on petrol by Rs.5 and on diesel by Rs.10. To begin with, this will not even offset the duty hikes since March 2020 but it is a good first step. Also, with the crude prices moving $80/bbl in the Brent market, there was little scope for anything else. The big question is why all states have not cut VAT rates and when will they also do it?

It is well known that petrol and diesel are also subjected to value added tax or VAT at state level. This forms an important source of revenues for the states. Almost all the BJP ruled states have followed up on the central announcement with VAT cuts. However, the non-BJP states like Maharashtra, Delhi, Rajasthan, Punjab, Tamil Nadu, Kerala, Telangana, West Bengal and AP are yet to announce VAT cuts. However, they will have to follow soon.

0 Views