Raipur: The Chhattisgarh government on Monday decided to reduce Value-Added Tax (VAT) on petrol and diesel by 1 per cent and 2 per cent, respectively, nearly three weeks after the Centre cut excise duties on the two fuels.
With the reduction in VAT, the price of petrol will come down by 70 paise and that of diesel by Rs 1.36 in the state, a government official said.
The decision was taken during a cabinet meeting chaired by Chief Minister Bhupesh Baghel here at his official residence, he said.
The move will cause a loss of nearly Rs 1,000 crore to the state exchequer, the official said.
Providing major relief to the people of the state. Chief Minister Bhupesh Baghel-led cabinet has decided to cut the prices of petrol and diesel. VAT on diesel and petrol has been reduced by 2 per cent and 1 per cent respectively. The state government will bear the revenue loss of about Rs 1,000 cr.. the Chief Minister's Office (CMO) tweeted.
"The state government had been imposing 25 per cent VAT on petrol and diesel. With this rate cut, the price of petrol will come down by 70 paise and that of diesel by Rs 1.36 in the state," the public relations department official said.
Briefing about other cabinet decisions, state Forest Minister Mohammad Akbar said it was decided to allow regular functioning of all classes in government and private schools in full capacity while complying with COVID-19 preventive protocols.
The state government had allowed reopening of private and government schools in August and September for different classes with certain conditions, including 50 percent attendance.
"The cabinet also decided that a centralized system will be adopted to further improve the quality of ready-to-eat nutritional food being distributed through Anganwadi centers to eradicate malnutrition among women and children. The preparation and distribution of ready-to-eat nutritional food will be done through Chhattisgarh State Seeds and Agriculture Development Corporation with automatic machines being used to process and package foods," he added.