Centre’s gas tax aid: More states, Union Territories comply with up, lower VAT

A TOTAL of 18 states and 6 Union Territories have lower taxes on auto gas, following the transfer by the Centre to chop excise responsibility on petrol and diesel by Rs 5 and Rs 10 per litre, respectively.
All 17 NDA-led states, together with Gujarat, Uttar Pradesh, Karnataka, Bihar and Haryana, have lower state taxes on petrol and diesel.
States and Union Territories that haven’t decreased Value Added Tax (VAT) on petrol and diesel embody Maharashtra, Tamil Nadu, West Bengal, Punjab, Telangana, Andhra Pradesh, Kerala, Jharkhand, Chhattisgarh and Delhi.
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Other states which have lower taxes on petrol and diesel embody  Madhya Pradesh, Himachal Pradesh, Tripura, Manipur, Goa, Assam, Uttarakhand, Sikkim, Mizoram, Nagaland, Meghalaya, Arunachal Pradesh and Biju Janata Dal-ruled Odisha.
According to a launch by the Petroleum Ministry, the UTs of Jammu and Kashmir, Chandigarh, Ladakh, Puducherry, Lakshadweep, and Dadra and Nagar Haveli and Daman and Diu have additionally lower VAT on petrol and diesel.
A gradual rise in crude costs and elevated taxes, each Central excise responsibility and state taxes, which have been in impact since May 2020, performed a key function in pushing the value of auto gas over the pre-Covid retail worth ranges this 12 months.
Between February and May final 12 months, the federal government elevated excise duties on petrol and diesel by Rs 13 per litre and Rs 16 per litre, respectively, amid a pointy decline in revenues as a result of Covid-19 pandemic and associated restrictions.
A lot of states had additionally hiked state taxes on petrol and diesel to shore up revenues amid falling Goods and Services Tax collections.
The extra cuts in VAT on petrol and diesel have led to costs falling by as much as Rs 12 per litre on petrol and Rs 17 per litre on diesel in sure states. Gujarat, Manipur and Assam are amongst states which have lower VAT by Rs 7 per litre every on petrol and diesel.
Certain states together with Haryana, Uttar Pradesh, and Karnataka have introduced {that a} lower in state taxes would carry costs of the auto fuels down by Rs 12 per litre every, together with the influence of the excise responsibility lower by the Centre.
The authorities had, whereas asserting the lower in excise responsibility charges, referred to as on states to “commensurately reduce VAT on petrol and diesel to give relief to consumers.”
The Centre had famous that the autumn in gas costs would come as a lift to farmers throughout the upcoming rabi season and in addition assist middle- and lower-income households by curbing inflation and boosting consumption within the financial system.