In a bid to provide relief to farmers, Mr Nitish Kumar led government in Bihar decided to slash the VAT on diesel by 0.36% from 18.36% to 18% reducing the price of diesel by 14 paise per litre.

A decision to this effect was taken by the state cabinet presided over by chief minister Mr Nitish Kumar.

Later, briefing reporters, Mr SK Modi deputy chief minister of Bihar said the cabinet decided to slash the vat on diesel by 0.36% from 18.36% to 18% reducing the price by 14 paise per litre.

He said that "The state exchequer will suffer loss to the tune of INR 37 crore per annum by slashing the VAT.”

(Sourced from ET)