Economy News

Rajasthan government declared a 2% cut in VAT on Fuel

Good news for the travelers has come in Rajasthan as the land of kings recently made a benchmark of record high fuel prices.

The Rajasthan government has brought down the VAT rate or the value-added-tax on petrol and diesel.

The decreased rate is settled at 2 percent from now giving relief to the people from neck high prices.

Prices of branded and premium petrol price already crossed Rs 100-mark in Sri Ganganagar on January 27.

The Indian government is currently imposing an excise duty of Rs 32.98 per litre on petrol and Rs 31.83 on diesel.

Ashok Gehlot, Chief Minster Rajasthan, commented that the prevailing excise duty tax are very excessive.

He further added to his statement that the basic excise duty is part of partible puddle financed to the states.

This is constantly reduced from Rs 11.33 to Rs 4.83 on diesel and Rs 9.48 to Rs 2.98 on petrol.

Hence, this continuous reduction in both the fuel prices is the reason why many other states are losing mammoth revenue.

Although, the retail fuel prices vary from state to state which later depends upon local taxes or VAT.

The State Finance Department issued orders on Thursday to control the situation which came in effect from Thursday midnight.

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