Rajasthan Government’s decision to reduce VAT rate by 2 per cent has effected a growth in CV sales in the state. Out of the Rs.700 crore revenue the state has earned from the transport sector in the first quarter of the current financial year, a large portion is claimed to have come from the sale of trucks. This has also helped the region to take a lead in heavy commercial vehicle sales. With total sales tax in Rajasthan among the lowest in North India post the reduction in VAT, sales of heavy commercial vehicles has been going strong. Thanks to the government’s initiative to reach out to truck dealers, manufacturers, and transporters associations to spread the message about its rate cuts, customers from neighbouring areas of Haryana, Punjab, Uttar Pradesh, Gujarat and Madhya Pradesh are known to flock to Rajasthan to purchase CVs. Plans are being chalked out to spread the message to other states as well.