Amid the hue and cry over rising fuel prices across the country, the Rajasthan Chief Minister Vasundhara Raje on Sunday announced a 4 percent reduction in Value Added Tax (VAT) on petrol and diesel. This move by the state government will bring down the petrol and diesel price by Rs2.5
The VAT on petrol will be reduced from 30 percent to 26 percent and on diesel from 22 percent to 18 percent, Raje announced at a public meeting organised in Rawatsar in Hanumangarh district as part of her ‘Rajasthan Gaurav Yatra’.
According to reports, the decision will cost the exchequer Rs 2,000 crore but will provide the people of the state a major relief.
“We have decided to reduce VAT on diesel and petrol by 4 per cent, which will provide much-needed relief to the people of the state, be it farmers or women or others,” Raje was quoted as saying by Business Standard.