Following the much awaited tax cut announced by the Center on Thursday about the prices of petrol and diesel, Jharkhand Government followed suit very quickly. The State Government soon after the declaration decided to slash Rs 2.50 on every liter of diesel and petrol on its part. The cut is in addition to the Center’s move that would bring in total relief of Rs 5 on every liter of the fuel.
When contacted, Additional Chief Secretary KK Khandelwal said that direction from the Chief Minister Office has come in this regard. “Yes, we have received directions about this just a while ago. VAT cut of Rs 2.50 per liter on diesel and petrol has been decided and we are going to notify it now,” Khandelwal told The Pioneer.
The State Government levies 22 per cent VAT on the twin motor fuels or fixed tax of Rs 15 per liter on petrol and Rs 8.37 on every liter of diesel and collects whichever amount is on the higher side.
Union Finance Minister Arun Jaitley earlier in the day announced that the Center would be shedding a bit its Excise Duty levied on the fuel prices by Rs 1.50 for every liter and another cut of Re 1 would come from the oil marketing companies, bringing the total benefit to consumers of Rs 2.50. He at the same breath also urged State Governments to follow the suit and announce reductions to match the gesture. The step of the Jharkhand Government is on that line.
The announcement has brought some kind of ease for the consumers as well as dealers who have been demanding from the State Government for rationalisation citing lower taxes in some of the neighbouring States.
“We were expecting at least Rs 3 per liter cut on diesel from the part of the State Government. The Center earlier also had requested all the States to cut the tax but only poll-bound BJP ruled State had followed it,” said Ashok Singh of Jharkhand Petroleum Dealers’ Association which had few days ago gone on one day strike in support of the demand.
Prices of the fuels have been witnessing unprecedented high with every passing day crossing Rs 80 for a liter of petrol. Diesel was not far behind in Jharkhand nearing Rs 80. Nevertheless how long the cushion would be available for the consumers is to be seen since crude oil prices are rising on regular basis and fear to eat up the relief in a week time or so.