After BJP ruled state Gujarat, Maharashtra has become the second state to slash the value added tax on prices of petrol and diesel by Rs 2 and by Rs 1 respectively. The decision would be a big relief to the state citizens as Maharashtra levies the highest VAT in the country on Petrol. Earlier in the day poll bound Gujarat also slashed the vat on fuel prices in the state. Even though it is retrograde step in the wake of stiff opposition on oil prices, the recent reductions will have a direct impact on the prices and it is good news. With the reduction of oil prices, we now expect the loss of business to the neighbouring states to reduce because of lesser price difference. Despite the series of reduction of Rs 4, petrol in Mumbai will remain costliest in the country. It is a right step in the right direction in the present economic scenario and will be welcomed by all the parties without any uproar. The state government is looking for garnering more business in the wake of economic slowdown as announced by RBI.
(The views expressed by the author in the article are his/her own.)