The Rajasthan government has announced an increase in Value Added Tax on petrol and diesel prices, making the fuel costlier.
It raised VAT on both the products by 4%, leading to an increase of Rs. 1.98 per litre in petrol and Rs. 1.76 per litre in diesel.
As a result, petrol will cost Rs. 66.28 per litre, while diesel will be priced at Rs. 55.16 a litre in Jaipur, an official said.
“The increase will generate additional revenue of Rs. 300 crore in the current fiscal. It was necessary to increase VAT to recover revenue losses,” Vaibhav Galaria, Commissioner Commercial Tax department said.
Revised VAT in the state now stands at 30% for petrol and 22 % on diesel.
Petroleum and Diesel Association of Rajasthan has opposed the move of the government and convened a meeting of the dealers on Saturday to discuss the issue. “VAT was already high in Rajasthan as compared to the neighbouring states. Now the government has increased it more which is not in the public interest,” Suneet Bagai, president of the association said.
The association after discussion may agitate against the government’s decision.
Opposition Congress has also targeted the state government for its decision, saying it has betrayed the people of the state.
The Congress party would hold protests against it, PCC vice president Archana Sharma said.