Fuel Prices: Chhattisgarh Govt To Reduce VAT On Petrol & Diesel

This decision was taken during the cabinet meeting chaired by Chief Minister Bhupesh Baghel, a government official said.

New Delhi: The Bhupesh Baghel-government on Tuesday announced that it will reduce the price of petrol by 1% and the price of diesel by 2%, according to a PTI report. This decision was taken during the cabinet meeting chaired by Chief Minister Bhupesh Baghel, a government official said.

According to the report, this move will cause a loss of nearly Rs 1,000 crore to the state exchequer.

Providing major relief to the people of the state. Chief Minister Bhupesh Baghel-led cabinet has decided to cut the prices of petrol and diesel. VAT on diesel and petrol has been reduced by 2 per cent and 1 per cent respectively. The state government will bear the loss of about Rs 1,000 cr, the Chief Minister's Office (CMO) tweeted.

Recently, Finance Minister Nirmala Sitharaman targetted the non-BJP ruled state governments on Monday when she was asked about rising prices of fuel and why there is no reduction in VAT.

While addressing a press conference after her meeting with the chief ministers and state finance ministers, Sitharaman said that People should ask their own state governments about high fuel prices as the Central government has taken the initiative by slashing excise duty on petrol and diesel.

Sitharaman said that the Centre had also appealed to states to reduce Value Added Tax (VAT) to further bring down rates and some states have even slashed the prices. "Petrol and Diesel can't be included in Goods and Services Tax (GST) till the GST Council sets the rate for their inclusion," the Finance Minister added, reported PTI.

The Centre had reduced excise duty on petrol and diesel by ₹ 5 and ₹ 10 per litre respectively on Diwali eve. Several states had reduced VAT to bring down fuel prices. However, some non-BJP ruled states have demanded that the union government further reduce excise duty.