Chhattisgarh Chief Minister Bhupesh Baghel on Monday said the reduction in excise duty on petrol and diesel by the Centre would cause a loss of around Rs 500 crore to the state exchequer, and reiterated that the Union government should withdraw the cess imposed on these fuels. He was talking to reporters at the Police Lines helipad here before leaving for Dantewada district as part of his constituency-wise public interaction drive ‘Bhent Mulaqat’. Asked whether the Chhattisgarh government will reduce the Value Added Tax (VAT) on petrol and diesel, “Baghel said, “I could not understand the (Sunday’s) statement of Nirmala Sitharaman ji that reduction on excise duty will not impact state’s share in it.” If the central excise is cut, then 41 per cent of its share which goes to the state would be automatically reduced, he said. “The revenue collection through VAT will also dip automatically,” he said.