Shimla: In order to give relief to the people from rising petrol and diesel prices the cabinet in its meeting held here today decided to reduce VAT on Petrol and diesel by one percent from existing tax rate.

The state governments’ moves come after the Union Government reduced the excise duty on petrol and diesel by Rs 2 earlier this month. Union Oil Minister Dharmendra Paradhan had thereafter, asked the state governments to cut VAT on the fuel products by 5 per cent, saying that states are the biggest beneficiaries of the revenues generated from petrol and diesel.

The cabinet, in its other decision, given nod to make suitable amendment in HP ceiling on Land Holding act to enable such religious institutions as have obtained exemption from the ceiling limit to dispose off their surplus land by way of sale, gift or any other means, subject to the condition that such transfer would be only in the favour of an agriculturist as defined in the HP Tenancy and Law reforms Act.

In order to provide a range of Health Care services for people in remote, un-served and underserved areas of the State, decided to operate Mobile Medical Units in 10 districts, except Kinnaur and Lahaul and Spiti, under National Health Mission (NHM).

The cabinet also decided to start two Bike Ambulances in Shimla town under National Ambulance Service (108) on trial basis to reduce the response of time emergencies.