Bihar to cut VAT on LPG by three per cent

Noting Railway Minister Lalu Prasad was also part of the UPA government's decision on the unprecedented hike in fuel prices, Bihar Deputy Chief Minister Sushil Kumar Modi on Sunday said the state has decided to cut VAT on LPG cylinders by three per cent making them cheaper by Rs ten.

Highlighting the measures taken by the state government to help people cope up with the situation, Modi said it was decided to cut VAT on LPG cylinders by three per cent making them cheaper by Rs 10.

"The cut in VAT on LPG cylinders, petrol and diesel would cost the state exchequer Rs 150 crore annually," he said.

Holding RJD supremo partly responsible for the price rise of petroleum products as he was also part of the UPA, Modi further alleged that Prasad had misused his position for personal gains and never bothered for the people of the country.

"The weak financial management and shortsightedness on the decisions on economic affairs by the UPA government led by Manmohan Singh led to skyrocketing prices of essential commodities," he said in a press statement.

"Bihar's NDA Government has tried to control the situation by reducing sale taxes on petroleum products," Modi said.

Earlier, in a bid to cushion the consumers against the hike in petrol and diesel prices, the state government promulgated an ordinance on June five reducing the sales tax on the two commodities by 2.5 and 1.64 per cent respectively, he said.

While the sales tax on petrol has been reduced from 27 per cent to 24.5 per cent, that on ordinary and high speed diesel it has been lowered from 20 per cent to 18.36 per cent, he added.