Gehlot reiterates demand for excise duty reduction on fuel
The Hindu
Rajasthan will lose ₹1,800 crore per year in VAT revenue
Facing pressure to reduce Value Added Tax (VAT) on petrol and diesel, Rajasthan Chief Minister Ashok Gehlot on Saturday reiterated his demand that the Centre further slash additional excise duty, special excise duty and cess on fuel for providing relief to common people from the rising inflation.
Several Bharatiya Janata Party-ruled States have reduced VAT rates after the Centre’s decision to cut excise duty on petrol by ₹5 per litre and on diesel by ₹10 per litre on Thursday. However, Mr. Gehlot has maintained that the VAT collection of States had automatically reduced in a proportionate manner after the Centre’s move.
Mr. Gehlot said the excise duty reduction had led to a loss of ₹1,800 crore per year in VAT revenue to Rajasthan, which was yet to receive the goods and services tax compensation of ₹5,963 crore from the Centre. He said the Centre had already reduced the share in excise duty which was earlier available to all State governments.
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