Chandigarh, Oct 21 (IANS) The Haryana cabinet Tuesday reduced the rate of central sales tax on inter-state sales of Maruti-Suzuki vehicles from two percent to one percent to provide the auto major a level-playing field in the market.At a meeting here chaired by Chief Minister Bhupinder Singh Hooda, the cabinet decided to reduce the tax from Nov 1.

With this reduction in tax, buyers of Maruti cars would benefit to the tune of Rs.1.4 billion (Rs.140 crore) for the remaining period of the current financial year, a government spokesman said here.

This benefit would be Rs.2 billion (Rs.200 crore) a year for the subsequent years, he added.

The Maruti-Suzuki manufacturing units are located in the Gurgaon and Manesar industrial belts in Haryana adjoining New Delhi.