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After excise duty cut, Bihar CM hints at reducing VAT on petrol, diesel
Bihar chief minister Nitish Kumar on Sunday hinted about the possibility of a cut in the value-added tax (VAT) on petroleum products after the Central government slashed the excise duty on petrol and diesel by ₹8 and ₹6 respectively on Saturday.
PATNA: Bihar chief minister Nitish Kumar on Sunday hinted about the possibility of a cut in the value-added tax (VAT) on petroleum products after the Central government slashed the excise duty on petrol and diesel by ₹8 and ₹6 respectively on Saturday.
Talking to media persons after meeting with Janata Dal (United) workers in the party office, Kumar said it was a matter of pleasure that the Central government had reduced the excise duty on petrol and diesel. “We will discuss the issue (about reducing the state’s taxes). Last time (in November 2021) we had cut down the tax (VAT). I had already said that we will reconsider it (reducing the VAT) once the Centre announced the relief. Now, that the Centre has done it, we will discuss it (in the cabinet),” said the CM.
The Centre’s announcement to slash the excise duty has brought down the petrol price to ₹107.24 per litre on Sunday in Patna vis-à-vis ₹116.75 a day ago. Similarly, diesel price has dropped to ₹94.04, which is ₹7.51 less than a day ago.
Deputy chief minister Tarkisore Prasad, who also holds the charge of the commercial taxes department, said that the VAT on petrol and diesel has been decreased to ₹1.88 and 98 paise in the wake of the reduction in excise duty. “We will look for ways to provide relief to the people, as the CM had already stated that the state might think of lowering down the VAT of the Centre offered the relaxation,” said Prasad.
Prime Minister Narendra Modi had last month appealed to the CMs to look for the scope of lowering the VAT on petrol and diesel.
In November last year, the state had reduced ₹1.30 VAT on petrol and ₹1.90 on diesel after the Centre slashed excise duty by ₹5 and ₹10 on petrol and diesel.
To a query regarding the nomination for Rajya Sabha on the berth to be vacated by Union minister RCP Singh in July, Kumar said that the decision would be taken on time. He, however, refused to comment on the RJD’s reaction on CBI raids on former CM Lalu Prasad and his family members and said those who were raided are the best to give an answer.
