C’garh keeping tab on other states for reducing VAT: CM

Chhattisgarh Chief Minister Bhupesh Baghel on Sunday stated that Chhattisgarh is not in favour of reducing the Value Added Tax (VAT) at present. The initiatives of other states are being observed as how they are reducing VAT on petrol and diesel.

He was talking to the media at the Raipur Civil Lines helipad before leaving for a Balod event.

The Central government had announced a cut on central excise by Rs 8 per litre on petrol and Rs 6 per litre on diesel.

Welcoming the decision, Baghel said that it would be good if the 4 percent cess imposed on other items also ends.

He said during the time of the UPA government, 9 percent central excise duty was charged on petrol and 3 percent on diesel. If the central government brings petrol and diesel to the same rate, then it will have a further reduction of Rs 6 on petrol and Rs 8 on diesel.

He added that it would result in a loss of Rs 570 crores to the state government but it will bring much relief to the common people.

The Chief Minister reiterated that the 4 percent cess imposed by the Central government on petrol and diesel should also be abolished. It is causing loss to the state governments.

In case, the Central government abolishes the cess of 4 percent, then the state government is ready to initiate action of reduction. But at present we are looking at other states to see how much VAT they are reducing, he added.