The prices of petrol and diesel will be reduced by Rs 4 and Rs 5 respectively from midnight on November 16 as the Ashok Gehlot government has decided to cut Value Added Tax on them. He tweeted, "In the Cabinet meeting today, it was unanimously decided to reduce the rate of VAT on petrol/diesel. From 12 o'clock tonight, the rates will be reduced by Rs 4 per liter for petrol and Rs 5 per liter for diesel."
He further wrote that the state government will bear a loss of Rs 3,500 crore due to this decision. Gehlot tweeted, "Due to this, the state government will incur a loss of Rs 3500 crore in annual revenue."
In the Cabinet meeting today, it was unanimously decided to reduce the rate of VAT on petrol/diesel. From 12 o'clock tonight, the rates will be reduced by Rs 4 per liter for petrol and Rs 5 per liter for diesel.
— Ashok Gehlot (@ashokgehlot51) November 16, 2021
The meeting chaired by Gehlot was held at the chief minister's residence.
Earlier in the month, the government of India reduced VAT on petrol and diesel, which further made many states and Union Territories to lower the prices.
READ | 22 states/UTs have lowered the VAT on petrol and diesel, says government
After the Centre reduced excise on fuel, there was growing pressure on state governments to reciprocate by slashing fuel tax to ease inflation and give the economy a consumption boost.
