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India

Updated on: Thursday, November 04, 2021, 03:02 PM IST

Taxes on fuel: Ashok Gehlot counters BJP's argument on VAT; says centre should give more relief

It is to note that the bucket of tax on petroleum products in Rajasthan is the highest in the country. The state is charging 36 per cent of VAT on petrol and 26 per cent on diesel. In addition to this, the consumer has to pay Rs. 1.75 per litre of road cess on petrol and Rs 1.50 per litre on diesel.
Rajasthan CM Ashok Gehlot | Photo: IANS

Rajasthan CM Ashok Gehlot | Photo: IANS

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After the reduction in excise duty on petrol and diesel by the central government, now it’s time for attacks and counter-attacks in Rajasthan as the state is charging the highest bucket of tax on petroleum products in the country. The party in opposition in the state has said that the centre has done its job now state government should reduce the VAT, while the CM Ashok Gehlot has countered the argument saying that with the reduction of excise duty the centre, the VAT of the state is automatically reduced in the same proportion.

"Yet we demand that the centre should reduce excise duty more," Gehlot added.


The state president of BJP Satish Punia has said, "Modi government has given a Diwali gift to the people of the country by slashing the excise duty on petrol and diesel, now state government should come forward and reduce the VAT to give relief to the people." He also said that this step has nothing to do with the results of by-polls.


While the CM Ashok Gehlot has put the ball in the centre’s court and said with the reduction in excise duty the VAT on petrol will reduce by Rs 1.80 per litre on petrol and Rs 2.60 per litre on diesel and the state has to bear the loss of Rs 1800 crores per year. "I urge PM to reduce excise duty more to give relief to the common man. We are ready to bear the loss of VAT in the public interest," said Gehlot in his tweet today.


It is to note that the bucket of tax on petroleum products in Rajasthan is the highest in the country. The state is charging 36 per cent of VAT on petrol and 26 per cent on diesel. In addition to this, the consumer has to pay Rs. 1.75 per litre of road cess on petrol and Rs 1.50 per litre on diesel. This bucket of tax and transportation costs has made petrol and diesel most expensive in some parts of Rajasthan like Ganganagar.


Sumit Bagai, the president of Rajasthan Petroleum Dealers Association said that VAT was increased by 4 per cent in the name of COVID-19 in the state and now as the disease is under control and the vaccine has been provided by the central government, the state government should reduce the VAT. He also demanded the removal of the road cess.

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Published on: Thursday, November 04, 2021, 03:02 PM IST
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