Excise Duty Cut On Fuel By-Product Of Bypoll Outcome, Says P Chidambaram

Several state government including Assam, Bihar, Karnataka and Tripura went ahead and slashed value-added tax (VAT) on petrol and diesel

New Delhi: In response to the cut in excise duty on petrol and diesel, Congress leader and former Union minister P Chidambaram said results of the recently concluded by-elections resulted in reduction in excise duties on fuel. On Wednesday, the central government cut excise duty on petrol and diesel by record amounts of Rs5 per litre and Rs10 per litre, respectively offering much needed relief to common man.

Chidambaram said the latest move of the Modi government is confirmation of the Congress charge that fuel prices are high mainly because of high taxes.

The former finance minister tweeted, “The results of the 30 Assembly and 3 LS by-elections have produced a by-product. The centre has cut excise duties on petrol and diesel! It is a confirmation of our charge that fuel prices are high mainly because of high taxes."

“And our charge that high fuel taxes is because of the greed of the central government,” he added.

 Hours after Centre reduced excise duty on fuel prices a day ahead of Diwali, several state government including Assam, Bihar, Karnataka and Tripura followed the suit and slashed value-added tax (VAT) on petrol and diesel. Chief Minister Himanta Biswa Sarma-led Assam government announced a VAT reduction of Rs 7 on petrol and diesel prices.

Even CM Nitish Kumar's government in Bihar went ahead and slashed VAT on petrol by Rs 1.30 and diesel by Rs 1.90. Additionally, Basavaraj Bommai's Karnataka government also announced a cut down in VAT on petrol and diesel by Rs 7.