State hikes VAT on petrol, fuel to be costlier by Rs. 2.67
Haryana has decided to increase Value Added Tax (VAT) on petrol from existing 20% to 25% that would mean an increase of Rs. 2.67 per litre. However, there will be no change in the diesel prices in Gurgaon. The price of petrol will now be Rs. 60.46 per litre.gurgaon Updated: Feb 13, 2015 10:52 IST
Haryana has decided to increase Value Added Tax (VAT) on petrol from existing 20% to 25% that would mean an increase of Rs. 2.67 per litre. However, there will be no change in the diesel prices in Gurgaon. The price of petrol will now be Rs. 60.46 per litre.
A Haryana government spokesperson said that even after the increase in VAT, petrol price will be lower as compared to neighbouring states of Punjab, Rajasthan, Himachal Pradesh and Uttar Pradesh.
The lowering of fuel prices are impacting the revenue of states as taxes on petroleum products are levied as per ‘ad valorem’ method whereby any increase or decrease in prices of fuel impacts the tax mobilisation. The hike will fetch Rs. 245 crore per annum in additional revenue.
The spokesman of Haryana Excise and Taxation department said after the increase, the new VAT rate on petrol with 5% surcharge would be 26.25%. Earlier, it was 20% plus surcharge.
“In adjoining states, the rate of VAT being charged on petrol is 30.80% in Punjab, 26.80% in Uttar Pradesh, 30% in Rajasthan and 27% in Himachal Pradesh,” Value Added Tax (VAT) on petrol after hike hiked petrol price per litre said the spokesperson.
“Even after the increase in VAT, the average retail sale price per litre in Haryana would be lower than the average retail sale price of patrol Rs. 74.12 per litre during the Congress government in Haryana as on July 1, 2014,” added the spokesperson.
Attacking the new government, former Haryana Chief Minister Bhupinder Singh crore per annum additional revenue for Haryana because of hike Hooda said, “The BJP government has done great injustice to the people of Haryana and this price hike and increase in VAT is repercussion of defeat of the party in the Delhi assembly, exposing its real face.”
Haryana had on November 25 raised the VAT on diesel from 9.24% to 12.07%, which would yield additional revenue of Rs. 737 crore to the state exchequer.