Government Can Reduce the Price of Petrol and Diesel Before Elections in MP, It Can Be Cheaper by ₹ 2 to ₹ 5 per Liter
Bhopal News: Before the assembly elections in Madhya Pradesh, the government may reduce the prices of petrol and diesel. It is proposed to make petrol cheaper by Rs 10 and diesel by Rs 2 to 5. The Commercial Taxes Department is conducting the investigation. In fact, PM Modi had said that petrol in the BJP-ruled states would be below Rs 100, but in the state, petrol is Rs 108.63 per litre.
This includes 29% VAT and Rs 2.50 cess. To increase the price of petrol from Rs 98 to Rs 99, it is being considered to reduce the amount of VAT from Rs 24.42 to Rs 7, while the cess can be reduced by Rs 2.50. There is talk of implementing the new rates this month itself. However, this will directly reduce the government’s revenue from VAT by Rs 400 crore.
After giving Rs 1,500 crore for the first installment of Ladli Bahna, the Shivraj government has to spend an additional Rs 2,500 crore on the interest waiver of the farmers. However, it is being told that Finance Minister Jagdish Deora is considering all aspects in this regard.
VAT on petrol will have to be reduced by 11 percent
It is being told that to bring down the price of petrol in the state below Rs 100, VAT will have to be reduced by 10 to 11 percent from the existing 29 percent VAT. After this VAT on petrol will be reduced from 18.50 to 19 percent. That is, if the income per liter is reduced from Rs 7 to Rs 7.50 from the current Rs 24.42 VAT, it will be Rs 17.50 paise. Currently, 19% VAT and Rs 1.50 cess is being imposed on diesel. Only cess can be reduced in this.