Jaitley urges states to cut VAT on petrol, diesel

DHAKA: After the Centre taking a hit of Rs 26,000 crore by cutting excise duty on oil, Finance Minister Arun Jaitley today nudged states to cut sales tax or VAT on petrol and diesel to provide further relief to consumers from high fuel prices.

Jaitley, who is here on three-day official visit, said the Rs 2 per litre cut in excise duty on petrol and diesel was done to give relief from relentless increase in prices and leave more money in hands of consumers.

“Now it is up to state Governments if they are concerned with the issue (to cut sales tax or VAT),” he told reporters here.

Referring to opposition ruled states, he said some state Governments, particularly in Kerala and Delhi, were at the forefront of demanding a cut in duties.

“And therefore state Governments must really look at their own VAT collections,” he said. (AGENCIES)