Suspend VAT & surcharges on petrol and diesel to provide relief to citizens, Jayant Patil urges CM

Kolhapur: MLA Jayant Patil of NCP (SP) on Thursday urged state govt to provide immediate relief to citizens reeling under rising fuel prices by doing away with VAT and surcharges on petrol and diesel, at least temporarily.

Fuel prices comprise multiple components, including the base price, central excise duty and state levies like VAT and surcharges.

Patil, who held the state finance portfolio for nine years, said he has written to chief minister Devendra Fadnavis requesting the removal of state levies on fuel. “People are suffering due to repeated fuel price hikes. If govt withdraws VAT and surcharges for a limited period, petrol and diesel prices could drop to around Rs 70-80 per litre, offering much-needed relief,” the MLA said while speaking in Sangli.

Highlighting the current tax structure, Patil said Maharashtra was imposing 25% VAT on petrol and 24% on diesel. In addition, the state was levying a surcharge of Rs 10.12 per litre on petrol and Rs 3 per litre on diesel, he said.

He said fuel prices had been increased four times over the past two weeks, intensifying the burden on consumers already grappling with inflation. “We are going through unprecedented times. Food inflation has crossed tolerable limits, and it is now state govt’s responsibility to share some of the burden,” he said.

Patil also recalled that state had earlier reduced VAT on fuel. Ahead of the Lok Sabha elections, then finance minister Ajit Pawar had brought down VAT on petrol in Mumbai and the metropolitan region from 26% to 25%. Prior to that, VAT rates were cut twice in 2022 after Centre reduced excise duty and urged states to follow suit to ease inflationary pressures.

According to Patil, state govt was currently earning nearly Rs 27,500 crore annually through taxes and surcharges on petrol and diesel.