In a move aimed at boosting local industries and coal businesses, the Hemant Soren-led government in Jharkhand today decided to cut the Value Added Tax (VAT) on bulk diesel purchases from 22 per cent to 15 per cent.
The decision was taken in the Cabinet meeting chaired by Chief Minister Hemant Soren on Tuesday. A total of 14 key proposals were cleared in the state cabinet meeting, highlighting the government’s focus on strengthening Jharkhand’s economy and attracting new investments.
The VAT cut is expected to motivate bulk buyers—particularly those in the coal and industrial sectors—to buy diesel within Jharkhand instead of sourcing it from nearby states such as Uttar Pradesh, West Bengal, and Odisha, where lower taxes had previously made them more appealing.
Officials believe this change could generate over Rs 100 crore in extra annual revenue for the State, while also reducing costs for local companies.
In some other major decisions of the Cabinet Chief Minister Hemant Soren, along with a delegation of senior officials, will travel to Sweden and Spain from April 19 to 26 to draw in global investment and boost job creation in the state.
The Cabinet also approved the addition of 1,373 new teaching positions in government secondary schools to improve the quality of education.
The Jharkhand Grassroots Innovation Internship Scheme was also approved in the meeting, offering over 17,000 students each year practical training along with a Rs 10,000 stipend.
The Jharkhand government also decided to increase VAT on Aviation Turbine Fuel (ATF) from 4% to 12% to better align with the state’s financial planning.
Additionally, the cabinet approved several administrative and infrastructure-related changes, such as staff promotions in the education sector, continued contracts for teachers in residential schools, and the rollout of the 2024 Telecom (Right of Way) Rules.
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