In flood-hit Himachal, diesel to cost ₹3/litre more as govt increases VAT

This is the second time that the Sukhvinder Singh Sukhu-led Congress government has increased the value added tax as the VAT was hiked by ₹3 in January, a month after the new govt took charge

At a time when Himachal Pradesh is grappling with the aftermath of last weekend’s flood, people got another shock as diesel got dearer by ₹3 a litre after the state government hiked the value-added tax (VAT) on it. The state government increased the VAT on diesel from the existing 9.96% to 13.9%.

The Himachal Pradesh government has hiked the value-added tax (VAT) on diesel from the existing 9.96% to 13.9%. (Representational photo)

A notification to this effect was issued on Friday night.

After the hike, the VAT on diesel, which was ₹7.40, has now gone up to ₹10.40.

This is the second time when the Sukhvinder Singh Sukhu government has increased VAT. Earlier, it had hiked the VAT by ₹3 in January, a month after taking charge in the state.

Opposition parties criticised the timing of the hike, saying it had been carried out when the state was coping with a natural calamity.

Leader of opposition and former chief minister Jairam Thakur said many had lost their lives and houses and businesses had been destroyed in the recent floods. “Higher diesel prices would only increase the inflation and prices of essential commodities will go up. The government should reconsider its decision,” he said.

The Communist Party of India (Marxist) also criticized the government for its “insensitive decision”. CPI(M)’s Shimla district secretary and former Shimla mayor Sanjay Chauhan said that the increase in VAT on diesel can’t be justified as it would add to the misery of the flood-hit people. “The government should immediately roll back the decision,” he said.