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 Petrol price to stay, Gehlot says relief already given

Despite a strong demand to cut the local sales tax (VAT) on petrol in the state, the government is in no mood to provide the relief. Chief minister Ashok Gehlot indicated that the state government had already cut down 2% sales tax on petrol in March, forecasting the rise in petrol prices.
 



 
After paying tribute to Jawaharlal Nehru on his death anniversary at Ramniwas Bagh on Sunday, Gehlot told media persons that constant efforts are being made to provide relief to the people in the state. "The government has already brought down the VAT on petrol in Rajasthan. This was done to insulate people from any price rise in petrol in future and the relief stands at around Rs 120 crore."

After the nationwide increase in petrol price, the state witnessed a whopping rise of Rs 7.92 and now petrol is being sold at Rs 76.69 per litre. The government on March 26 lowered the VAT on petrol from 28% to 26%. However, still the state taxes are too high, compared to Goa where it is zero.

Meanwhile, the chief minister justified the Union government's move to hike the petrol rates. "The purchasing capacity of the people has increased and inflation is persisting everywhere. People should understand that when petrol rates increase, the government provided a package of Rs 780 cr to the people. Last time also we gave the relaxation Rs 250 crore in taxes," said Gehlot.

Stressing the government efforts in curbing the inflation, Gehlot mentioned that the state government has made the kerosene VAT free and waived off taxes amounting to Rs 300 cr. Similarly, the VAT on pulses and other edible items have been brought down to zero. Rajasthan became the first state to provide a subsidy if Rs 25 from state taxes and provided relaxation of almost Rs 800 crore so far, he said.

Source: Times of India, India,  dated 28/05/2012

 

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