Rajasthan reduces VAT on petrol, diesel

Rajasthan Chief Minister Ashok Gehlot on Tuesday announced that that the state cabinet has decided to reduce the value-added tax (VAT) on petrol and diesel prices by Rs 4 and Rs 5 respectively.

Rajasthan Chief Minister Ashok Gehlot on Tuesday announced that that the state cabinet has decided to reduce the value-added tax (VAT) on petrol and diesel prices by Rs 4 and Rs 5 respectively. The new prices would be effective from midnight.

"In the Cabinet meeting today, it was unanimously decided to reduce the rate of VAT on petrol/diesel. From 12 o'clock tonight, the rates will be reduced by Rs 4 per litre for petrol and Rs 5 per litre for diesel," Gehlot said in a tweet. "Due to this, the state government will incur a loss of Rs 3,500 crore in annual revenue," he added.

The Centre had announced a reduction of central excise duty on petrol and diesel by Rs 5 and Rs 10 respectively on the eve of Diwali and had urged the states "to commensurately reduce" VAT on the two petroleum products to give relief to consumers. (ANI)