Bhopal, Oct 13: Taking a cue from Gujarat, Himachal Pradesh and Maharashtra, Madhya Pradesh government on Friday slashed Value Added Tax of VAT on fuel. Madhya Pradesh government slashed 3 per cent VAT on petrol and 5 per cent on diesel. The revised prices will come into effect from midnight. Madhya Pradesh is the third BJP-ruled state where the VAT has been reduced in a bid to bring down rising fuel prices.

“The Government of Madhya Pradesh has decided to cut down 3 per cent VAT on petrol and 5 per cent VAT on diesel,” the CMO Madhya Pradesh tweeted. The decision was taken days after the Finance Ministry asked state chief ministers to cut retail VAT rate on petrol and diesel by as much as 5 pe cent, following an excise duty cut of Rs 2 per litre on both.

The Centre had, earlier, announced that the excise duty on fuel would be cut, citing that the move was an attempt to “cushion the impact of rising international prices of crude petroleum oil, and petrol and diesel on their retail sale prices”.

A day later, Union Petroleum Minister Dharmendra Pradhan asked the states to slash the Value-Added Tax (VAT) on fuel by 5 per cent. “We urge the states to take the responsibility just like the Centre did, in direction of the consumer interest, so that they get more relief,” Pradhan said.