Rajasthan: BJP demands reduction in VAT, CM Ashok Gehlot cites revenue loss of Rs 1200 Crores

The political rhetoric on VAT on petroleum products has again started in Rajasthan. The opposition BJP said that CM Ashok Gehlot was very vocal on inflation and now it is his turn to give relief to the people. While Gehlot has replied that the state government will have to bear a revenue loss of Rs 1,200 crores due to the reduction of excise duty on petroleum products.

"Due to the reduction in the prices of petrol and diesel by the central government, the VAT will reduce by Rs 2.48 per litre on petrol and Rs 1.16 litre on diesel. There will be a revenue loss of about Rs 1200 crores per year to the state and the general public will get its benefit," said Gehlot in a Tweet.

On the other hand, the Bjp is saying that Gehlot should show the courage to reduce the VAT and give relief to people. The deputy leader of the opposition in the assembly Rajendra Rathor said, "Gehlot always blames the central government for inflation but he had increased the VAT by 12 per cent on petrol and 10 per cent on diesel since July 2019. Now he should show courage to reduce it to give relief to people."

The president of Rajasthan Petroleum Dealers Association Sumit Bagai said, "Rajasthan government charges VAT on selling price so there is no such loss as the government was getting increased revenue when prices were on the rise." He added that the VAT in Rajasthan is still the highest in the country and the government should give its consent to bring petroleum products under GST.

It is to mention here that Rajasthan is charging VAT of 31.04 per cent on petrol and 19.30 per cent on diesel.