The Rajasthan government on Saturday reduced value-added tax (VAT) on petrol by ₹ 2.48 per litre and diesel by ₹ 1.16 per litre, following the reduction of excise duty by the Centre.
Taking to Twitter, Chief Minister Ashok Gehlot wrote, “Due to the reduction in the prices of petrol and diesel by the central government, the state government will reduce VAT by ₹ 2.48 per litre on petrol and ₹ 1.16 per litre on diesel. With this, petrol will be cheaper by ₹ 10.48 and diesel by ₹ 7.16 per liter in the state.”
Meanwhile, the Kerala government also announced a cut in tax on the prices of petrol and diesel by ₹ 2.41 and ₹ 1.36 respectively.
Earlier on Saturday, in a significant step aimed at providing relief to people from high fuel prices, the Centre announced a reduction in excise duty on petrol by ₹ 8 per litre and on diesel by ₹ 6 per litre.
Making the announcement, Union Finance Minister Nirmala Sitharaman said that the move will have a revenue implication of around ₹ 1 lakh crore per year. The minister, who made several other announcements aimed at curbing inflation, said subsidy will also be provided on cylinders under the Ujjwala scheme.
She urged states to also reduce VAT on petroleum products to give relief to the common man.
The government had similarly reduced excise duty on petrol and diesel in November last year on the eve of Diwali. It had then reduced excise duty on petrol by ₹ 5 per litre and on diesel by ₹ 10 per litre.