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Petrol, diesel gets dearer as Punjab hikes VAT
A notification for upward revision in VAT was issued by the state excise and taxation department on June 10. Punjab Petroleum Dealers Association president Sandeep Sehgal said the retail prices came into effect from 6 am on Sunday. With the increase in VAT, retail prices of petrol and diesel per litre in Ludhiana rose to ₹98.73 and ₹89.02 from ₹97.80 and ₹88.13, respectively, he said.
Petrol and diesel rates went up in Punjab by 93 paise and 89 paise per litre, respectively, for retail customers on Sunday after the state government revised the value added tax (VAT) on fuel.
A notification for upward revision in VAT was issued by the state excise and taxation department on June 10. Punjab Petroleum Dealers Association president Sandeep Sehgal said the retail prices came into effect from 6 am on Sunday. With the increase in VAT, retail prices of petrol and diesel per litre in Ludhiana rose to ₹98.73 and ₹89.02 from ₹97.80 and ₹88.13, respectively, he said.
The value added tax on diesel has been increased by 1.13 percentage points to 12% or ₹10.02 per litre, whichever is greater, while on petrol it has been increased by 1.08 percentage points to 15.74% or ₹14.32 per litre, whichever is greater. The VAT increase is likely to generate additional revenue of ₹500 crore a year, a government official said.
This is the second time that the Aam Aadmi Party (AAP) government in Punjab has hiked the fuel prices this year. In February also, the state government had imposed a cess of 90 paise per litre on petrol and diesel as part of its efforts for additional resource mobilisation.
Calling the price increase another “anti-people decision”, Punjab Congress president Amarinder Singh Raja Warring said that the decision has once again exposed the failure and incompetence of the AAP government.
