Reduce VAT on fuel: Kamal Nath to Madhya Pradesh government

Senior Congress leader raises demand after neighbouring Rajasthan reduced tax on petrol, diesel on Sunday
Madhya Pradesh Congress president Kamal Nath on Monday demanded that the State government reduce VAT on fuel two times of what has been done in neighbouring Rajasthan. Rajasthan Chief Minister Vasundhara Raje had on Sunday announced a 4 % reduction in value-added tax on petrol and diesel which in turn would bring down their prices by Rs. 2.5 per litre in the BJP-ruled State. Ms. Raje, speaking at a public meeting organised in Rawatsar in Hanumangarh district there, had said that VAT on petrol will be reduced from 30% to 26% and on diesel from 22% to 18%.
“The Madhya Pradesh government should reduce VAT on petrol and diesel two times of what has been done in Rajasthan,” Mr. Nath told reporters here on Monday.
“When the price of crude in the international market was $122 per barrel, the cost of petrol was around Rs. 55 per litre. Now the price of crude is $70-72 per barrel, but the cost of petrol is Rs. 86 per litre,” Mr. Nath, a former Union Commerce Minister, said. He also told reporters that Congress president Rahul Gandhi would visit Madhya Pradesh on September 17 and hold a roadshow from Lalghati to Dussehra Maidan here apart from meeting party workers.
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