The Union Petroleum Minister, Mr Murli Deora, said on Tuesday that the Maharashtra Government has agreed to look into the issue of reducing sales tax on petrol and diesel applicable in that State. The Minister was speaking to media persons after his meeting with the Chief Minister of Maharashtra, Mr Vilasrao Deshmukh.
This would come as a relief to petrol pump dealers, who were losing high volume business to neighbouring States where tax rates were much lower. The sales tax rates in Maharashtra are the highest in the country, which put the petrol pump dealers at a disadvantage.
Maharashtra imposes 33 per cent sales tax on diesel and 28 per cent on petrol while neighbouring States such as Gujarat levy 23.5 per cent on diesel and 26 per cent on petrol and Goa 21 per cent on diesel and 22 per cent on petrol.
Speaking after the meeting the Maharashtra Chief Minister, said that the issue would be considered.