BHOPAL: Madhya Pradesh has become the third BJP-ruled state to reduce the value-added tax (VAT) on petrol and diesel by 3 and 5 percent, respectively. The state’s finance minister Jayant Malaiya after holding deliberations with CM Shivraj Singh Chouhan and later with officials of his ministry on Friday announced 3% VAT cut on petrol and 5% VAT cut on diesel.
The minister also announced removing Rs 1.50 cess on diesel, but left the Rs 4 cess on petrol untouched.
The finance minister said while the VAT on petrol has been slashed from 31% to 28% (3%), the VAT on diesel has been slashed from 27% to 22% (5%).
The slashing of VAT by 3% will make petrol cheaper by up to Rs 1.62 per litre from the existing Rs 74.75 to Rs 73.13 and the per litre price of diesel after 5% cut of VAT and removal of cess will be reduced by up to Rs 4 from the present Rs 63.31to Rs 59.37.
The new rates after slashing of VAT will be effective from post-midnight, the minister added.