Jharkhand cuts VAT on diesel, silent on petrol

Ranchi, Oct 4 : After the Central government on Thursday announced a cut of Rs 2.50 excise duty on a litre of petrol and diesel, the Jharkhand government also announced to slash VAT on diesel by Rs 2.5 per litre, effectively making it cheaper by Rs 5 in the state.

"Jharkhand Chief Minister Raghubar Das has asked to reduce the diesel prices by Rs 2.50 per litre. Steps will be taken to implement it immediately," Jharkhand Commercial Taxes Secretary K.K. Khandewal told IANS.

However, there was no announcement on slashing of taxes on petrol.

Earlier in the day, Union Finance Minister Arun Jaitley announced to cut petrol and diesel prices by Rs 2.50 per litre and also asked the states to effect a similar cut so as to pass on a cumulative relief of Rs 5 per litre to the consumers.

In response to the Centre's call, Jharkhand Chief Minister ordered an immediate cut in VAT on prices of diesel.

October 1, the Jharkhand Petroleum and Dealers Association also shut the petrol pumps demanding reduction in VAT.