JAIPUR: The Rajasthan government on Monday decided to reduce the VAT on diesel for the mining sector in the state.
Chief Minister Ashok Gehlot has approved the draft notification to provide cheaper diesel with a view of providing relief to the mining sector businesses.
According to the proposal of the state finance department, bulk purchase of diesel for commercial activities is done from outside the state due to the cheaper price of the fuel in the neighbouring states of Rajasthan.
In the past, manufacturing industries have been given concession in the state value added tax (VAT) on purchase of diesel from oil marketing companies located in the state.
In this sequence, the mining industry will also be given benefit of reduced VAT on buying diesel from the oil marketing companies located in Rajasthan, an official statement said.
With this decision, the mining sector will get the benefit of purchasing diesel at lower rate in Rajasthan itself and the state government will get an additional revenue of Rs 108.84 crore.