Chandigarh: The Punjab Cabinet on Thursday gave approval to hike value-added tax (VAT) on petrol and diesel. The VAT on petrol and diesel are increased by 61 paise a litre and 92 paise per litre, respectively.A decision in this regard was taken by the council of ministers in a meeting chaired by Chief Minister Bhagwant Mann.
He said VAT on petrol will be raised by 61 paise and 92 paise a litre for diesel. The hike in VAT on fuel will lead to an increase in revenue by Rs 395 crore from diesel and Rs 150 crore from petrol.
Value-Added Tax (VAT) is a consumption tax levied on the value added to goods and services at each stage of production or distribution. It is a type of indirect tax, meaning it is collected by businesses on behalf of the government, rather than being paid directly by consumers. VAT is designed to be a transparent, multi-stage tax that is added incrementally at each step of the supply chain.
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On Wednesday, the Mizoram government has hiked prices of petrol and diesel by Rs 4 per litre each. The state government imposed a new levy of Rs 2 per litre on both diesel and petrol for social infrastructure and services cess, and an additional Rs 2 per litre for road maintenance. Earlier, the state government increased VAT on petrol from 5.23 percent to 10 percent and on diesel from 16.36 percent to 18 percent. With the additional levies, the current price of petrol in Aizawl is Rs 99.24 per litre, while a litre of diesel costs Rs 88.02
Earlier, in June, the Goa government increased VAT on petrol and diesel. The new VAT rates raised the price of petrol by Re 1 per litre and diesel by 36 paise per litre. With the VAT hike, the price of petrol in Goa will rise to Rs 95.40 per litre, while diesel will be priced at Rs 87.90 per litre.
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