Dy CM remains non-committal on reducing tax on petrol & diesel

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Bihar Deputy Chief Minister Sushil Kumar Modi Thursday remained non-committal on whether the state government would reduce tax on petrol and diesel in view of the Centre's appeal in this regard.

The central government announced a Rs 2.50 per litre cut in petrol and diesel prices after it reduced excise duty by Rs 1.50 a litre and asked oil companies to absorb another Re 1.

Finance Minister Arun Jaitley also asked state governments to follow suit by cutting a sales tax or VAT by a similar amount.

"We (Bihar govt) have not received any letter asking state government to reduce the tax (VAT) on petrol and diesel. The state government will take a decision after going through the letter once we receive it. So far, we have not got any such letter," Modi told reporters here in his official chamber.

"After going through the letter which will enable us to know as the prices of petrol and diesel have been cut on which count and by what amount. We will make calculations and weigh our (state's) situation before taking any decision i.e. whether or not to reduce the tax," Modi, who is also state's finance minister, said.

Notably, following the Centre's announcement, BJP-ruled Maharashtra and Gujarat - which are among the highest taxing state, announced Rs 2.50 per litre reduction in the VAT.

Bihar government levies 26 per cent of VAT on petrol and 19 per cent on diesel per litre, state's commercial tax department official sources said.

Replying to a query, the Dy CM said that the price rise of petrol and diesel is certainly a matter of "concern" for everyone.