Bhopal,June 18 :The Chief Minister Shri Shivraj Singh Chouhan has said that with a view to providing relief to the people of Madhya Pradesh from the sharp hike in petroleum products by the central government, the state government has decided to slash the tax on L.P.G. and diesel. Now the entry tax on L.P.G. would be reduced lowering the price of an L.P.G. cylinder by Rs. ten.
The Chief Minister said that VAT on diesel has been reduced by two percent from 25 to 23 percent.
The Chief Minister informed that the decision to slash the tax on these two products would incur a revenue loss of Rs. 140 crore to the state government. Earlier, the state government had reduced VAT on diesel by one percent from April one 2008. Thus VAT has been reduced by three percent on diesel during the current financial year.
Shri Chouhan said that earlier VAT on diesel was 28.75 percent, In the interest of farmers and other consumers, the state government reduced it by 2.75 percent from April 1, 2007. In view of the inflation and sharp price hike the state government again reduced VAT on diesel by one percent from 26 to 25 percent from April one, 2008 incurring a revenue loss of Rs. 85 crore. Thus, the present state government has reduced VAT on diesel by 5.75 percent in three installments.