The Gujarat government “drastically reduced the tax rates on fuel in 2021”, said Finance Minister Kanu Desai, adding, the reduction in tax rate on petrol benefited the citizens by Rs 3,194 crore and in terms of diesel by Rs 5,367 crore in the last two years. Desai made these remarks Tuesday while replying to a starred question raised by Patan Congress MLA Kirit Patel during the ongoing Legislative Assembly session.
Despite decreasing the tax rates on fuel four years back, the government has till date not raised it, the minister said.
In 2021, the state government had reduced the tax rate on petrol from 20.10 percent to 13.7 percent while in the case of diesel, it was reduced from 20.20 percent to 14.9 percent.
“The reduction in tax rate on petrol has benefited citizens by Rs 3,194 crore in the last two years,” he said. Of Rs 3,194 crore, people were benefited by Rs 1,568 crore in 2023-24 and Rs 1,626 crore in 2024-25, Desai said.
Apart from petrol, the reduction in tax rate on diesel has benefited the citizens by Rs 5,367 crore in the last two years, he informed the Assembly. The citizens have benefited by about Rs 2,919 crore in 2023-24 and about Rs 2,448 crore in 2024-25 because of reduction in diesel tax rate, he said.
