Centre has called upon the state governments to reduce and rationalize Value Added Tax, VAT, on Petrol and Diesel. In a letter to the Chief Ministers of various states, Union Petroleum and Natural Gas Minister, Murli Deora has said that imposition of VAT on add valorem basis aggravates the impact of rising international oil prices. He said that the VAT rates are very high in most of the states. Mr. Deora has urged the states to review the subject so that the much needed tax-reform can be implemented. While appreciating the revenue concerns of the state governments, he said that the interest of the consumers need to be protected.