With Centre Slashing Excise Duty on Petrol, Diesel, VAT to Get Cut Automatically, Says Rajasthan CM

With the Centre slashing excise duty on petrol and diesel, the value-added tax imposed by the state will get reduced automatically in a proportionate manner, Rajasthan Chief Minister Ashok Gehlot said on Thursday. He demanded a further reduction in the excise duty on petrol and diesel to give people relief from the rising inflation and asserted the Congress government in Rajasthan is “ready to bear revenue loss for public welfare”.

With the Centre cutting excise duty on petrol by Rs 5 per litre and on diesel by Rs 10 per litre, the VAT rate on petrol will get reduced by Rs 1.8 per litre and Rs 2.6 per litre on diesel automatically, the Rajasthan chief minister said. This way, petrol will be cheaper by Rs 6.8 per litre and diesel by 12.6 per litre in Rajasthan. The state will lose Rs 1,800 crore VAT revenue, he underlined.

“I would once again urge prime minister (Narendra Modi) to reduce excise duty so that people can get the relief from rising inflation. Our government is ready to bear the revenue loss for public welfare,” Gehlot said. He said that it will be ensured with the help of district administration, oil companies and petrol pump dealers that the people get direct benefit of reduced fuel price.

Gehlot said the state had reduced VAT by 2 per cent in January 2021, which led to a loss of Rs 1,000 crore revenue. Now, with a loss of 1,800 crore VAT revenue following the Centre’s decision, Rajasthan is staring at a total loss of Rs 2,800 crore revenue earned from VAT on fuel, he added. The excise duty on petrol and diesel was cut by a record Rs 5 and Rs 10 per litre respectively to help bring down rates down from their highest-ever levels. The reduction follows an unrelenting hike in international oil prices pushing pump rates across the country to their highest-ever levels. While petrol is above Rs 100-a-litre-mark in all major cities, diesel has crossed that level in more than one-and-a-half dozen states.

Several BJP-ruled states and Bihar, where the BJP is part of the ruling coalition, also reduced VAT rates. It comes on the eve of Diwali which will help bring down the skyrocketing prices of fuel and provide some relief to the common man battling inflation.

Read all the Latest India News here