From July 1, petrol and diesel prices in the Mumbai metropolitan region have decreased following the state government’s decision to reduce the Value Added Tax (VAT). This reduction in VAT applies specifically to the areas of Mumbai, Thane, and Navi Mumbai.
As a result, petrol prices have dropped by 65 paise per litre, while diesel prices have fallen by Rs 2.60 per litre in these regions.
Last week, while presenting the Maharashtra Budget, Deputy Chief Minister Ajit Pawar announced the changes. He stated, “Tax on diesel is being decreased from 24% to 21% for the Mumbai region, effectively reducing diesel prices by Rs 2 per litre. In the Mumbai region, tax on petrol is being decreased from 26% to 25%, effectively reducing petrol prices by 65 paise per litre.”
The VAT reduction will impact the state exchequer by Rs 200 crore, according to Pawar.
Chief Minister Eknath Shinde added, “The VAT cut has been proposed in the budget. Once the budget is passed by the state legislative assembly and the council, the decision will come into effect from July 1.”
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