Patna, (Bihar Times): Bihar on Thursday became the first state to promulgate an ordinance reducing sales tax on petrol and diesel. The sales tax on petrol was cut by 2.5 per cent from 27 per cent to 24.5 per cent and 1.64 percent on ordinary and high speed diesel, that is, from 20 per cent to 18.36 per cent.

According to the Commissioner-cum-Secretary of Commercial Taxes Department, Shubhkirti Mazumdar sales tax on cooking gas was not reduced as LPG is a 'declared commodity' under central sales tax.

It needs to be mentioned that on Wednesday while flaying the Centre for increasing oil prices Chief Minister Nitish Kumar promised to cut the sales tax.


Nitish announcement came even before the Congress President Sonia Gandhi asked party Chief Ministers on Thursday to effect a cut in sales tax on petroleum products.

Congress alone, or in alliance with some party, is in power in around half a dozen states such as Maharashtra, Assam, Jammu and Kashmir, Andhra Pradesh and Haryana..The cut in sales taxes may only bring down the prices marginally, but in this price war just before the parliamentary election the move has acquired political significance.

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