Raipur: In a significant move aimed at benefiting the state’s industrial sector, the Chhattisgarh government has announced a 6% discount on diesel. This decision is expected to bring relief to industrialists and help boost the state’s revenue.
Previously, an additional charge of Re 1, along with a 23% VAT, was levied on bulk diesel purchases. This heavy tax burden led industries to purchase diesel from neighbouring states, resulting in a revenue loss for Chhattisgarh.
However, with the new government decision, industries will now pay only a 17% VAT, and the Re 1 extra charge has been removed.
The reduction in VAT and the removal of the additional charge are expected to make diesel more affordable for industries in Chhattisgarh, encouraging local purchases and reducing the outflow of revenue to other states.
Sources suggest that the state’s revenue, which had been suffering from a loss of over Rs 300 crore due to this issue, is now set to improve.
