Rajasthan chief minister Ashok Gehlot announced on Tuesday that his government will follow in on the footsteps of many other states and reduce the Value Added Tax (VAT) levied on fuel.
While addressing a programme at a village in Jodhpur, Gehlot told reporters that "When all states have reduced the prices, we would also have to reduce it."
"Our government will also provide relief to people by reducing VAT on petrol and diesel in the state," he added.The Gehlot administration had been under intense pressure to reduce VAT charged on fuel after it came under repeated attacks of the opposition after Punjab, another Congress-ruled state, had done so.
Punjab government’s advertisement claiming fuel prices in the state were lower than the neighbouring states of Delhi, Haryana, and Rajasthan had added to the criticism, reported PTI.
{{/usCountry}}Punjab government’s advertisement claiming fuel prices in the state were lower than the neighbouring states of Delhi, Haryana, and Rajasthan had added to the criticism, reported PTI.
{{/usCountry}}The Charanjit Singh Channi-led Punjab government had announced a reduction in petrol and diesel prices by ₹10 per litre and ₹5 per litre respectively, effective from November 7 midnight.
Gehlot’s announcement comes hours after the Congress veteran urged Centre to further slash excise duty, citing fund crunch caused by the Covid pandemic. "Now, they have provided a meagre relief," he said, adding that the Centre should further reduce excise duty by ₹10 on petrol and ₹15 on diesel.
Gehlot also accused the Centre of "looting" people by levying massive taxes on fuel. "Increasing excise duty excessively first and then reducing it and simultaneously creating a competitive environment among states to reduce VAT is against the spirit of cooperative federalism," he said.