Rajasthan Chief Minister Ashok Gehlot has written to Prime Minister Narendra Modi, seeking a further reduction in Excise duty over fuel. The Chief Minister said that the current reduction (on 3 November) by Rs. 5 on Petrol and Rs.10 on Diesel, has reducted the VAT by Rs 1.8 and Rs 2.6 per litre of petrol and Diesel respectively. The cost of a litre of Petrol has gone down by Rs 6.8 and that of Diesel by Rs. 12.6 per litre.
The Chief Minister mentioned the pressure of inflation on the general public especially after the direct and indirect losses faced during the pandemic. His argument was that the state levied tax will automatically go down once the excise duy is futher reduced. The current reduction in Excise will cost the public exchequer of Rajasthan a loss of Rs 1,800 Crore. The state government had also reduced the VAT by 2% earlier in January 2021, which had resulted in a reduction in revenue to the tune of Rs 100 Crore.
केन्द्र द्वारा Excise Duty कम करने के साथ ही राज्यों का उसी अनुपात में VAT स्वतः ही कम हो जाता है, फिर भी हमारी मांग है कि महंगाई को कम करने के लिए केन्द्र को और अधिक Excise Duty कम करनी चाहिए। pic.twitter.com/u5NWEDL1P4— Ashok Gehlot (@ashokgehlot51) November 4, 2021
Ashok Gehlot also said that the district administration, oil companies and petrol pumps will jointly coordinate to ensure that the benefits are passed on to the end users. With the reduction in excise on fuel, the rate of Petrol has gone down by Rs 6.8 per litre and that if Diesel by Rs. 12.6 per litre.