Raipur: After the reduction in the rates of VAT on diesel-petrol by the central government, now the Chhattisgarh government can also reduce the rates of VAT. The Commercial Tax Department will prepare its proposal in a day or two and will put it before chief minister Bhupesh Baghel, said health and commercial tax (GST) minister TS Singh Deo.
While talking to media persons, Deo said that the prices of petrol and diesel in neighbouring states will also be taken into account. He said that at present there is a flat rate of 25 per cent on diesel and petrol. A cess of one and two rupees has also been levied. Apart from this, it is being considered to reduce the rate of VAT.
Chhattisgarh is surrounded by other states from all sides. In such a situation, the prices there will also have to be taken into account. Their details have been requested. If we charge more than neighboring states, then people get their tanks fill in other states. This also results in loss of VAT. If we reduce it as compared to the neighbors, then maybe we will get more volume. This will also be taken care of in the new proposal, he said.
He added that on November 3, the central government had announced a reduction of Rs 5 and Rs 10 in central excise. The new rates came into effect from Diwali. Since then, 22 states and union territories have also cut VAT.
The consumers of Chhattisgarh have also got relief after the central government reduced the central excise. On Thursday, the price of petrol in Raipur was Rs 101.91 per litres. On Wednesday, its rate was Rs 107.73 per litres. Petrol prices remained stable at 101.91 on Saturday as well. At the same time, the price of diesel is Rs 93.80 per litres. Before the price reduction, its price had reached Rs 106.38 per liters.