Jaipur: With the center cut customs on gasoline and diesel, the value added tax imposed by the state will be reduced automatically proportionally, said Head of Rajasthan Ashok Gehlot said on Thursday.
He demanded further reduction in customs in gasoline and diesel to provide assistance to people from increasing inflation and confirms that the Congress Government in Rajasthan “is ready to bear the loss of income for public welfare”.
With the Customs Cutting Center on Gasoline by Rs 5 per liter and on Diesel with Rs 10 per liter, the VAT tariff on gasoline will be reduced by Rs 1.8 per liter and Rs 2.6 per liter on diesel automatically, said the Head of Minister Rajasthan .
In this way, gasoline will be cheaper by Rs 6.8 per liter and diesel of 12.6 per liter in Rajasthan.
The state will lose Rs 1,800 Crore VAT income, it is underlined.
“I will once again urge Prime Minister (Narendra Modi) to reduce excise duties so that people can get relief from increasing inflation.
Our government is ready to bear the loss of income for public welfare,” said Gehlot.
He said that it would be ascertained by the assistance of the District Administration, oil companies and gas station dealers who benefited directly from the reduction of fuel prices.
Gehlot said the state had reduced VAT of 2 percent in January 2021, which caused the loss of RS 1,000 Crore income.
Now, losing 1,800 crore VAT income after the central decision, Rajasthan stares at the total revenue of Rs 2,800 Crore obtained from VAT on fuel, he added.
Customs on gasoline and diesel are cut by a record of each RS 5 and Rs 10 per liter to help reduce tariffs down from their highest level.
The reduction in following an unrelenting increase in international oil prices pushed the pump level throughout the country to their highest level.
While gasoline above RS 100-a-liter-mark in all major cities, Diesel has crossed that level in more than one half a dozen countries.
Some states and Bihar ruled by BJP, where BJP is part of the powerful coalition, also reduces VAT rates.
It happened at night Diwali which would help reduce fuel prices skyrocketed and provide assistance to ordinary people fighting inflation.