Petrol Price in Madhya Pradesh: Chief Minister cuts back 3% Value-Added Tax

Madhya Pradesh cuts 5 per cent VAT on diesel and 3 per cent on petrol new rates to be effective from midnight

Madhya Pradesh has cut the sales tax or VAT on petrol and diesel by up to 5 per cent after Gujarat, Maharashtra and Himachal Pradesh, following Centre' instruction.

The Centre had, earlier, announced that the excise duty on fuel would be cut, citing that the move was an attempt to "cushion the impact of rising global prices of crude petroleum oil, and petrol and diesel on their retail sale prices".

Madhya Pradesh Shivraj Singh Chouhan said that the state has reduced 3% retail Value-Added Tax on petrol and 5% on diesel. The announcement has come after Maharashtra and Gujarat also reduced the prices of petrol and diesel. Increasing rates of petrol and diesel prices was the reason of consumer inflation in September, with a 5.56 rise in the Index.

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The Centre had, earlier, announced that the excise duty on fuel would be cut, citing that the move was an attempt to "cushion the impact of rising global prices of crude petroleum oil, and petrol and diesel on their retail sale prices".

Petroleum minister Dharmendra Pradhan has called for the inclusion of petrol and diesel under the ambit of GST to ensure uniformity of prices.

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