Petrol-Diesel / Assam reduces ₹7 VAT on petrol & diesel after Centre announces cut

New Delhi: Hours after the Centre slashed excise duty, the Assam government announced that it will cut VAT on petrol and diesel by ₹7 with immediate effect. 

“Heartening to learn Central Govt decision to reduce excise duty on petrol and diesel. In consonance with the decision of Honble PM @narendramodi, I am pleased to announce that Assam Govt will also reduce VAT on petrol and diesel by ₹7/- with immediate effect," chief minster Himanta Biswa Sarma said on Twitter. 

The Centre today reduced excise duty on petrol and diesel by ₹5 and ₹10 respectively from tomorrow (Thursday) on the eve of Diwali. In a statement, the central government said that the Indian economy has witnessed a remarkable turnaround post the Covid induced slowdown. All sectors of the economy – be it manufacturing, services or agriculture – are experiencing significant upward economic activity.

“To give a further fillip to the economy, the Government of India has decided to significantly reduce the excise duty on diesel and petrol," it said. The Centre further said that reduction in excise duty on petrol and diesel will also boost consumption and keep inflation low, thus helping the poor and middle classes. 

The central government also asked the states to reduce VAT on petrol and diesel to give relief to consumers. Assam has become the first state to bring announce the VAT cut following excise cut move by the Centre.