Rajasthan: BJP slams CM Gehlot's decision to not reduce fuel VAT; warns of protests

Leader of Opposition from BJP Gulabchand Kataria on Monday took a dig at Rajasthan Chief Minister Ashok Gehlot for his incompliance in lowering Value Added Tax (VAT) on fuel. CM Gehlot refused to remove VAT from diesel and petrol citing Rs 1800 crore per year loss in terms of VAT revenue. BJP's Kataria while criticising CM Gehlot's governance had stated that the BJP wouldn't mind taking to the streets to protest against the aformentioned matter.

Not excise duty, but VAT reduction: BJP leader Kataria  

Leader of Opposition Gulabchand Kataria said that the BJP would take to the streets and protest if the Rajasthan government does not cut the VAT on fuel. VAT is charged at Rs 36 per litre on petrol and Rs 26 per litre on diesel, making it the highest VAT in the country.

The BJP, while demanding for the reduction of VAT on fuel, maintained that Rajasthan did not require reduction in excise duty. Leader of Opposition Gulabchand Kataria said that on the appeal of the Central Government, 23 states of the country had already given relief to the public by cutting VAT, but the Rajasthan government had done nothing to provide relief.

Former Chief Minister Vasundhara Raje also took a dig at the Congress government.

Raje said, "In 2018, our BJP government had reduced VAT by 4 percent on petrol and diesel to give relief to the public. The financial burden of about Rs. 2 thousand crores due to this had to be borne by our government at that time. Most of the state governments have reduced VAT on petrol and diesel, but the Congress government of Rajasthan has refused to reduce VAT on petrol and diesel."

Reason for Gehlot's decision to not reduce VAT 

Chief Minister Ashok Gehlot has categorically refused to reduce VAT on diesel and petrol. Gehlot said that the state's VAT on fuel automatically reduced by Rs 1.8 per litre on petrol and Rs 2.6 per litre on diesel due to the decision of the central government to reduce the excise duty on the same. Because of this shortfall, the state has lost Rs 1800 crore per year in VAT revenue.

Image Credit - ANI/PTI