After the concession given by the central government in the prices of petrol and diesel, now the Rajasthan government has once again cut VAT. In the cabinet meeting on Tuesday night, the government has cut petrol by Rs 4 and diesel by Rs 5 per litre. The new rates came into effect at midnight.
The government has issued a notification late at night and has now reduced VAT on petrol to 31.04 % instead of 36 and diesel to 19.30 % instead of 26. After which petrol has reached around Rs 107 and diesel around Rs 90.50 per litre in the major districts of the state. Whereas earlier petrol had reached the price of Rs 111.10 and diesel Rs 95.71 per litre.
Chief Minister Ashok Gehlot tweeted that in the cabinet meeting, it has been decided to reduce VAT on petrol and diesel. From Wednesday, the sale of petrol and diesel will start across the state at cheaper rates.
Recently, after the decision of the Central Government, many states of the country including Punjab had decided to reduce VAT on the prices of petrol and diesel. Following this, there was continual pressure on the state government to reduce VAT. But, Chief Minister Ashok Gehlot refused to reduce VAT.
Due to this, there was resentment among the opposition and common people against the Gehlot government. The Rajasthan Petroleum Dealers Association started a protest against the demand for the reduction of VAT. They submitted a letter to the government regarding the reduction of VAT rates. It states that the government can increase the revenue received by the state by reducing VAT.
After this, the government decided to reduce VAT in Rajasthan on Tuesday.
The new rates
Petrol: Rs 111.10 per litre
Diesel: Rs 95.71 per litre