Madhya Pradesh slashes VAT on petrol and diesel | bhopal | Hindustan Times
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Madhya Pradesh slashes VAT on petrol and diesel

Madhya Pradesh is the first among BIMARU states to reduce value added tax on petrol and diesel.

bhopal Updated: Oct 13, 2017 13:47 IST
HT Correspondent
HT Correspondent
Hindustan Times, Bhopal
Fuel prices,VAT,Petrol
Madhya Pradesh cut VAT on petrol and diesel following appeal by the Central government. (AFP)

After Gujarat and Maharashtra, Madhya Pradesh became the third BJP-ruled state to slash value added tax (VAT) on petrol and diesel.

While VAT on petrol has been reduced by 3%, the same on diesel has gone down by 5%. An additional Rs 1.50 has been reduced in the cess on diesel. The new rates will apply from Friday midnight.

Chief minister Shivraj Singh Chouhan made an announcement to the effect in Bhopal on Friday. Madhya Pradesh becomes the first state among BIMARU states to reduce VAT on petrol and diesel after an appeal from the central government to the states.

In Bhopal, petrol will now cost Rs 73.13 per litre against the earlier price Rs 74.79 per litre. Similarly, diesel will be sold at Rs 59.37 per litre against the existing rate Rs 63.31 per litre.

In June this year, state-owned oil companies dumped a 15-year old practice of revising rates on 1st and 16th of every month and instead adopted a dynamic daily price revision to instantly reflect changes in cost.

Chouhan said in a statement VAT had been reduced in a bid to give relief to common man and farmers. This will lead to reduction in transportation charges and market prices of goods.