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Petrol, diesel to cost less in Gujarat and Maharashtra

NEW DELHI: On Tuesday, the state governments of Gujarat and Maharashtra announced a cut in VAT (Value Added Tax) on petrol and diesel. Gujarat took the first initiative, slashing the VAT by 4 per cent. With this rate cut, the price of petrol will come down by Rs 2.93 and that of diesel by Rs 2.72 in the state, he said. The effective price of petrol in Gujarat from midnight on Tuesday will be Rs 67.53 per litre and that of diesel Rs 60.77 per litre in the poll-bound state.
"After the central government's instructions, Gujarat has decided to reduce VAT on petrol and diesel by 4 per cent from Tuesday midnight," Chief Minister Vijay Rupani said at a press meet
Later in the day, Maharashtra followed suit by effecting a similar change which will bring down the price of petrol and diesel will by Rs 2 and Re 1 respectively.
"The chief minister has approved a proposal to reduce the VAT on petrol and diesel by Rs 2 and Re 1 a litre, respectively. This is our Diwali gift to the masses," Finance Minister of Maharashtra Sudhir Mungantiwar said.
He said the decision will cause an annual revenue loss of Rs 2,000 crore to the state exchequer.
"The government is ready to bear the additional financial burden despite Maharashtra's economy not being in a good shape," he said.
The price change in both the states will be effective from midnight.
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