State Government on Monday decided to reduce the value added tax (VAT) on fuel
Team News Riveting
Raipur, November 22
Unlike other Congress-ruled states, people of Chhattisgarh will not get much relief from the reduction of value added tax (VAT) on petrol and diesel that the state government announced Monday.
The Bhupesh Baghel Government today decided to reduce the VAT on petrol and diesel by 1 per cent and 2 per cent respectively. The decision would put a burden of Rs 1,000 crore in the state exchequer.
Following the slash in the VAT, the price of petrol and diesel in Chhattisgarh would see a nominal reduction. According to petrol pump owners, the price of petrol was likely to come down by 70 to 90 paise a litre while diesel would be cheaper by Rs 1.45 per litre in Chhattisgarh.
On Monday, the price of petrol and diesel was Rs 101.76 per litre and Rs 93.78 per litre in the state. The exact price after the new VAT slab would be known on Tuesday morning when the oil companies would announce the new rate.
The Central government had slashed the excise duty on petrol and diesel by Rs 5 and Rs 10 a litre respectively on November 3 and had urged the states to cut VAT. While the BJP-ruled states followed the call, opposition-governed states showed reluctance. Punjab was exceptional as the Congress-ruled state was going to the polls early next year.
After Punjab, Rajasthan was another Congress-ruled state that reduced the VAT as the fuel price had sharply come down in the neighbouring states. Now, Chhattisgarh followed the suit but would not bestow a big breather to the people.
Following the Rajasthan government’s decision, petrol and diesel prices came down by Rs 4 and Rs 5 respectively in the state while in Punjab, it was highest. Chief Minister Charanjit Singh Channi slashed Value added tax (VAT) on Petrol and Diesel by Rs 10 per litre and Rs 5 per litre respectively. In Chhattisgarh, it would be nominal.
The state government officials could not be contacted for its version on the issue.
