BJP calls for VAT cut, CM Ashok Gehlot points to revenue loss of Rs 1200 Crores

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Political rhetoric over VAT on petroleum products has started again in Rajasthan. Opposition BJP says CM Ashok Gehlot has been vocal on inflation and now it is his turn to relieve the people. While Gehlot replied that the state government will have to bear a loss of revenue of Rs 1,200 crore due to the reduction in excise duty on petroleum products.

“Due to reduction in petrol and diesel prices by the central government, VAT will be reduced by Rs 2.48 per liter on petrol and Rs 1.16 liter on diesel. There will be a revenue loss of around Rs 1,200 crores per year for the state and the general public will benefit,” Gehlot said in a Tweet.

On the other hand, Bjp says Gehlot should show courage to reduce VAT and relieve people. Deputy Leader of the Opposition in Assembly Rajendra Rathor said: “Gehlot still blames the central government for inflation, but he has increased VAT by 12% on petrol and 10% on diesel since July 2019. Now he should show courage to reduce it to relieve people.”

President of the Rajasthan Petroleum Dealers Association, Sumit Bagai, said: “The government of Rajasthan charges VAT on the sale price, so there is no loss such that the government received an increase in revenue when the prices were increasing. He added that VAT in Rajasthan is still the highest in the country and that the government should give its consent for petroleum products to be subject to GST.

It is to be mentioned here that Rajasthan charges VAT of 31.04% on petrol and 19.30% on diesel.

Posted: Sunday, May 22, 2022, 7:18 PM IST

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