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Petrol, diesel prices increased as state government hikes VAT

Chandigarh: Punjab government has increased Value Added Tax (VAT) imposed on petrol and diesel. After this revision, the price of petrol and diesel will go up in the state. The state government hiked the VAT by 10%. This will lead to an increase in the price of petrol and diesel in the state by 92 paise per litre and 88 paise per litre, respectively.

The cost of one litre of petrol in the state will now be Rs 98.95 while diesel prices will be Rs 89.25 per litre.

This is the second time this year that the prices of fuel have been increased in the state. Earlier, in February, 2023, the state government imposed a 90 paise per litre VAT on petrol and diesel.

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VAT or Value Added Tax is a consumption tax that is levied on goods and services at each stage of their production and distribution, up to and including the point of sale. The VAT is ultimately borne by the consumer, but it is collected from businesses at each stage of the supply chain. The VAT is collected by the state governments. Businesses that are required to register for VAT must file monthly returns with the state government. The state government then uses the information from these returns to collect the VAT from businesses.

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