MP cabinet approves proposal to cap VAT on petrol and diesel | bhopal | Hindustan Times
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MP cabinet approves proposal to cap VAT on petrol and diesel

The MP cabinet on Tuesday approved a proposal to fix minimum limit to value added tax (VAT) collected on petrol and diesel to cut down on revenue loss due to plunging fuel prices.

bhopal Updated: Feb 24, 2016 17:26 IST
HT Correspondent
As of now there is a VAT of about 28% on petrol and 31% on diesel in the state.
As of now there is a VAT of about 28% on petrol and 31% on diesel in the state.(HT file)

The MP cabinet on Tuesday approved a proposal to fix minimum limit to value added tax (VAT) collected on petrol and diesel to cut down on revenue loss due to plunging fuel prices.

Currently, VAT is charged at 28% on petrol and 31% on diesel in the state. Additional tax was imposed on the same when fuel prices started falling.

According to official sources, the cabinet decision means an amendment to the Act concerned will be tabled in the assembly’s ongoing budget session. A fixed minimum limit on tax would ensure that there is no revenue loss to the government whenever there is reduction in prices of petrol and diesel.

The cabinet also cleared a proposal allowing the akhadas to use domestic LPG cylinders during the ensuing Simhastha fair. About 3,100 metric tonnes of wheat, 1,300 metric tonnes of rice and 30,000 LPG cylinders would be made available at the mela. The government would also give a subsidy of more than Rs 8 crore on the sale of wheat, rice and LPG cylinders.

In another decision, the government decided to create about 2,300 posts of nurses, including 669 male nurses, in the health department.