Deora lauds Maharashtra for reducing sales tax on diesel

New Delhi, Dec 1 (UNI) Petroleum and Natural Gas Minister Murli Deora today complimented the Maharashtra Government for taking a progressive step of announcing a reduction in Sales Tax of diesel.

With effect from today, the Maharashtra Government has reduced Sales Tax on diesel to 25 per cent (28 per cent for Mumbai, Thane and Navi Mumbai) from the existing 30 per cent (33 per cent for Mumbai, Thane and Navi Mumbai) and Rs 1 per litre.

Mr Deora said it is a matter of great satisfaction that Maharashtra has favourably considered the request for reduction in sales tax.

Government of Maharashtra was earlier too, the first to respond to the call of the Minister to forego incremental sales tax on the price increases on petrol and diesel in June 2006, he added .

He added that this welcome step has sharply reduced the prices of diesel for the consumers. Thus, not only the consumers would be greatly satisfied but also dealers of diesel.

The Sales Tax rates of Maharashtra are now comparable with neighbouring states. It is expected that the reduction will encourage consumers and commercial vehicles to purchase diesel within Maharashtra, increasing the overall volume of diesel for the state. As a result, the state is expected to make up any likely loss in tax revenue through increase in volumes.

UNI/BKS CS VV1533