To collect revenue for the development schemes, the states have been given the constitutional right to levy necessary taxes. He said that the Centre first increased the additional and special excise duty on petrol and diesel and later on reduced it by a minimal level and tried to create an atmosphere of mutual competition among states for reducing VAT which is also contrary to the spirit of Cooperative Federalism.The Chief Minister said that during the lockdown, on May 6, 2020, the Central government had increased the excise duty by Rs 10 per litre on petrol and Rs 13 per litre on diesel. On November 4, 2021, after reducing excise duty on petrol by Rs 5 per litre and on diesel by Rs 10 per litre, the Centre claimed that it has provided a big relief to the general public, whereas, in reality, in the year 2021 itself, prices were increased by around Rs. 27 and Rs. 25 respectively on petrol and diesel. In such a situation, the reduction in the excise duty by the Central government appears to be insufficient, he said.Gehlot said that more than 22% of the total revenue of Rajasthan comes from the VAT on petrol and diesel. From January 29, 2021, till now, the Rajasthan Government has reduced around Rs. 3 per litre on petrol and Rs. 3.80 per litre on diesel.
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