Jaipur, Nov 16 (IANS): The Rajasthan government on Tuesday decided to reduce Value-Added Tax (VAT) on petrol and diesel by Rs 4 and Rs 5 per litre respectively. This will be effective from Tuesday midnight, Chief Minister Ashok Gehlot said.
The decision to slash VAT rate on petrol and diesel was taken unanimously in the cabinet meeting held here on Tuesday.
The new rates will be applicable from Tuesday midnight, according to which petrol will be cheaper by Rs 4 per litre and diesel will be slashed by Rs 5 per litre. The state will incur a loss of Rs 3,500 crore in its annual revenue with this decision, said Gehlot in his tweet.
After the Centre reduced excise on fuel early this month, there was growing pressure on state governments to reciprocate by slashing fuel tax to ease inflation and give the economy a consumption boost.