Petrol Dealers Association starts 48 hrs strike in the state.
Rajasthan Petrol Dealers Association (RPDA) went on 48 hours strike from Sunday morning at 6 am, pressing for its demand to reduce VAT rate and increase dealers' commission in the state.
The Madhya Pradesh government on Friday announced cuts in state-imposed taxes on diesel and petrol, which will lead to a reduction in the prices of the two petroleum products by Rs 4 and Rs 1.62, respectively.
The move is expected to cause a revenue loss of an estimated Rs 2,000 crore per annum to the state exchequer, official sources said.
The decision came after a meeting of the state’s Finance Minister Jayant Kumar Malaiya with Chief Minister Shivraj Singh Chouhan earlier in the day.
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Malaiya told reporters that the VAT on diesel had been reduced by 5 per cent to 22 per cent from 27 per cent and cess was also slashed by Rs 1.50.
Similarly, the VAT on petrol had been cut by 3 per cent to 28 per cent from 31 per cent, the minister said.
According to Malaiya, the state government would have to bear a loss of Rs 1,000 crore in revenue in the next six months, which will swell to Rs 2,000 crore in annual terms.
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