Bharat Bandh: Rajasthan Announces 4% Reduction in VAT on Petrol and Diesel Ahead of Stir

Jaipur: On the eve of the nationwide Bharat Bandh called by Congress, Rajasthan chief minister Vasundhara Raje announced a four percent reduction in value-added tax (VAT) on petrol and diesel on Sunday, which will reduce their prices by Rs 2.5 per litre in the state.

VAT on petrol will be reduced from 30 to 26 per cent and on diesel from 22 to 18 per cent, Raje said at a public meeting held in Rawatsar in Hanumangarh district during her 'Rajasthan Gaurav Yatra'.

The decision will cost the exchequer Rs 2,000 crore and will provide the people a relief of Rs 2.5 per litre on petrol and diesel.

"We have decided to reduce VAT on diesel and petrol by 4 per cent, which will provide much-needed relief to the people of the state, be it farmers or women or others," Raje told reporters in Rawatsar after making the announcement.

Petrol and diesel prices continued to soar on Sunday as rupee continued its tumble and global crude oil prices scaled new heights.

The opposition Congress has called for a nationwide shutdown on Monday over rising fuel prices and depreciation of the rupee.

Attacking the Raje government over the rising fuel prices, senior Congress Ashok Gehlot said that the CM was forced to reduce the VAT on petrol and diesel after the Congress party’s call for Bharat Bandh received widespread public support.

In the tweet, Gehlot also said that the four percent reduction is insufficient and demanded that the chief minister announce immediate relief on gas cylinders too.

Targeting the Congress, the chief minister had said that the party had failed to play the role of an effective opposition and came out of its shell just before the election.

Assembly election in Rajasthan is scheduled for later this year.