The Gujarat government on Tuesday reduced Value Added Tax on petrol, diesel by three per cent and waived off four per cent VAT on LPG, announced the State Health Minister Jaynarayan Vyas.
By this announcement price of LPG would be reduced by Rs 13 per cylinder while that of petrol by Rs 1.38 per litre and that of diesel by Rs 1 per litre, Health Minister Jaynarayan Vyas said.
The state government charged 24 per cent VAT on petrol and diesel with additional three per cent cess and four per cent VAT on LPG.
The decision was taken at the State Cabinet meeting chaired by Chief Minister Narendra Modi.
The cabinet studied the recommendations of the four- member Committee of Ministers headed by Finance Minister Vaju Vala.
The committee was formed to suggest ways to give relief to consumers as well as maintain a momentum of growth of the state.
The action of the State Government has come after the BJP high command directed the BJP-ruled states to reduce VAT to give relief to the common man after the Central Government announced increase of Rs 5 and Rs 3 per litre for petrol and diesel while Rs 50 for every LPG cylinder.
Vyas said by this decision the state government would have to bear revenue loss of Rs 530 crore.