A Vasundhara Raje Master Stroke? Four Per Cent VAT Reduction On Petrol And Diesel Announced, Prices Down Rs 2.5 Per LitreRajasthan Chief Minister Vasundhara Raje. (Himanshu Vyas/Hindustan Times via Getty Images)

Rajasthan Chief Minister Vasundhara Raje fought back against the fuel price hike and announced a four-per cent cut in value-added tax (VAT) on petrol and diesel on Sunday (9 September) and set an example reports The New Indian Express.

State sales taxes on petrol came down to 26 per cent from the earlier 30 per cent and 22 per cent to 18 per cent for diesel. The announcement came soon after the prices of petrol and diesel saw a record high on yesterday.

Chief Minister Vasundhara Raje while attending a meeting in organised in Rawatsar in Hanumangarh district as part of her 'Rajasthan Gaurav Yatra' said "We have decided to reduce VAT on diesel and petrol by 4 per cent, which will provide much-needed relief to the people of the state, be it farmers or women or others,".

The Chief Minister took a jibe at the Congress and said that they had failed as an effective opposition and the protest are election gimmicks and they won't stand the test of electorate.

Price cuts will come to effect from midnight today (10 September) and will reduce petrol prices by Rs 2.5 per litre while costing the exchequer close to Rs 2000 crore. The price cuts came as a sever blow to the BJP critics who slammed the central government for price hike, while state taxes contributed the most.

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