Bhopal Oct 13 (IANS) 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.
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.
--IANS
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