Vasundhara Raje cuts VAT on petrol and diesel by 4% to douse fuel fire

Rajasthan chief minister Vasundhara Raje on Sunday announced that the state government was reducing VAT on petrol and diesel by 4%.

Rajasthan Chief Minister Vasundhara Raje on Sunday announced slashing Value Added Tax on Petrol and Diesel by 4%, a day ahead of the nationwide shutdown called by the Congress to protest runaway fuel prices.

The VAT on petrol, which was 30%, will now be 26% and the VAT on diesel that was 22% has now been reduced to 18%. (Bloomberg File Photo)

Raje made the announcement during a programme as part of her Gaurav Yatra in Rawatsar town in Hanumangarh district. The new prices will come into effect from Sunday midnight.

She said The VAT on petrol will be reduced from 30% to 26% and on diesel from 22% to 18%. The decision will bring down petrol and diesel prices down by Rs 2.5 per litre but will cost the state exchequer Rs 2000 crore, which will be borne by state government.

Raje said during her Gaurav Yatra people of the state demanded that the government lower the fuel prices. “Our government is people’s government, their voice is god’s voice for us which is why we have reduced VAT on petrol and diesel. The move will provide much needed relief to common man, farmers, traders, students, women etc,” she said.