Jharkhand slashes diesel VAT to boost coal industry
THE JHARKHAND STORY NETWORK Advertisement Ranchi, April 8: In a significant move aimed at supporting local industries and coal companies, the…
THE JHARKHAND STORY NETWORK
Ranchi, April 8: In a significant move aimed at supporting local industries and coal companies, the Hemant Soren government has announced a reduction in VAT on bulk diesel purchases from 22% to 15%. This key decision was among 14 proposals approved during the state cabinet meeting held on Tuesday, reflecting the government’s push to bolster Jharkhand’s economy and promote investment.
The VAT reduction is designed to encourage bulk consumers—especially those in coal and industrial sectors—to source diesel locally, rather than from neighbouring states like Uttar Pradesh, Bengal, and Odisha, where tax rates had previously made imports more attractive. Officials estimate this could boost state revenue by over ₹100 crore annually, while reducing operational costs for local businesses.
Other Major Approvals:
- Global Investment Push: CM Soren and a high-level delegation will visit Sweden and Spain from April 19–26 to attract investment and create job opportunities in Jharkhand.
- Education Boost: Creation of 1,373 new teaching posts in government secondary schools.
- Youth Innovation: Approval of the Jharkhand Grassroots Innovation Internship Scheme, benefiting over 17,000 students annually with hands-on training and a ₹10,000 stipend.
- Health Sector Upgrade: New guidelines to reinvest hospital insurance claim funds into better management and maintenance.
- ATF Tax Revised: VAT on Aviation Turbine Fuel increased from 4% to 12% to align with fiscal priorities.
- Extended Policies: The state’s revised rehabilitation policy has been extended until 2027.
The cabinet also approved multiple administrative and infrastructural reforms, including promotions in the education sector, extension of teaching contracts in residential schools, and implementation of the 2024 Telecom (Right of Way) Rules.
