Following the Centre’s lead, the Chief Minister Ashok Gehlot-led Rajasthan government on Saturday slashed the Value-added tax (VAT) on fuels in the state. Announced by CM Gehlot on Twitter late evening, the government has reduced VAT on petrol by Rs 2.48 per litre and diesel by Rs 1.16 per litre in Rajasthan.
“Due to the reduction in the prices of petrol and diesel by the central government, the state government will reduce VAT by Rs 2.48 per litre on petrol and Rs 1.16 per litre on diesel. With this, petrol will be cheaper by Rs 10.48 and diesel by Rs 7.16 per liter in the state,” tweeted CM Gehlot.
Before Rajasthan’s announcement of VAT reduction, a similar cut was also undertaken by the Kerala government, slashing fuel prices in the state by Rs 2.41 for petrol and Rs 1.36 for diesel. The moves from the states come after a significant announcement by Union Finance Minister aimed at providing relief to common man from the soaring prices of fuel in the country. The Centre on Saturday evening announced that the excise duty will be reduced on petrol by Rs 8 per litre and on diesel by Rs 6 per litre.
Announcing measures in a slew of tweets, FM Sitharman said that the revenue implication of the move will be approximately Rs 1 lakh crore per year. Among the announcements was also another significant move of providing subsidy on cylinders under the Ujjwala scheme, aimed to relieve the stress piling on due to inflation.
The FM went on to urge state governments to cut the VAT charges on petroleum products. In a similar move in November 2021, the Centre had slashed excise duty on petrol and diesel on the eve of Diwali by Rs 5 a litre and by Rs 10 a litre, respectively.
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(With inputs from agencies)
