The Chhattisgarh government, under the leadership of Chief Minister Vishnu Deo Sai, has implemented two key economic measures aimed at providing relief to small traders and reducing fuel costs for consumers. Announced in the state budget earlier this year, these reforms came into effect on April 1. The government has doubled the e-way bill exemption limit for intrastate goods transport to ₹1 lakh and reduced VAT on petrol by ₹1 per litre. These measures are expected to benefit a significant portion of the population, particularly two-wheeler users, while also easing compliance burdens for small businesses. The initiatives are part of the state’s broader strategy to stimulate economic growth and enhance the ease of doing business.

The decision to raise the e-way bill exemption threshold from ₹50,000 to ₹1 lakh is expected to benefit nearly 1.2 lakh small traders by reducing regulatory hurdles and minimising paperwork. With the revised limit, the need for e-way bill generation is projected to decline by 54 per cent, simplifying logistics for small and medium enterprises (SMEs). However, high-value goods such as pan masala, tobacco, plywood, iron, steel, and coal will continue to require documentation to prevent revenue leakage. Finance Minister OP Choudhary emphasised that the policy reflects the government’s commitment to simplifying business processes and promoting growth for small traders. Trade bodies, including the Chhattisgarh Chamber of Commerce, have welcomed the decision, calling it a significant step towards fostering a more business-friendly environment.

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The ₹1 per litre reduction in petrol VAT is expected to provide financial relief to middle and lower-income households, particularly those reliant on two-wheelers for daily commuting. With nearly 82 per cent of the state’s 1.4 crore registered two-wheelers dependent on petrol, the cut is projected to save households between ₹300 and ₹500 per month on fuel expenses. Speaking on the initiative, CM Sai stated that the move aims to reduce the financial burden on working-class families, calling it a step towards making essential commodities more affordable. The fiscal impact of the VAT reduction is estimated at ₹850 crore for the 2025–26 financial year, but the government remains confident that the economic stimulus from increased consumption will offset the revenue loss.

These measures are expected to have far-reaching economic effects. Lower logistics costs for businesses could contribute to an annual boost of approximately ₹1,200 crore in trade activity. The state’s Commercial Tax Department will closely monitor exempted goods to prevent misuse, while the GST Network (GSTN) will deploy AI-based tools to track compliance. Looking ahead, the government is considering a similar VAT reduction for diesel, depending on revenue trends and economic conditions.

These decisions align with Chhattisgarh’s budget commitment to simplifying governance and enhancing business efficiency. The e-way bill revision follows similar policy changes in Gujarat and Maharashtra, though Chhattisgarh’s decision to keep coal under taxation reflects its localised economic priorities. The Opposition Congress has criticised the fuel tax cut, arguing that a mere ₹1 reduction is insufficient given the rising cost of living. Party leaders have also raised concerns over the fiscal impact of these measures on state revenue and have called for greater transparency in implementation.

While the opposition remains critical, many experts have largely welcomed the reforms, with some urging the government to extend similar tax relief measures to other sectors, including agriculture and logistics. The government has indicated that it will conduct quarterly audits of exempted goods to ensure policy compliance. Discussions are also underway to assess the feasibility of further tax reductions on fuel and essential commodities, depending on economic conditions.

Commenting on the reforms, Finance Minister O.P. Chaudhary stated, “Our policies are crafted at the intersection of empathy and economics—this is the Chhattisgarh model.” The dual changes signal the state’s focus on business-friendly policies and targeted financial relief for citizens. Their long-term impact will depend on the effectiveness of implementation, compliance, and fiscal management in the months ahead.