Tuesday, December, 06,2022

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State govt increases VAT on petrol and diesel

Jaipur: A day after Transport Minister Pratap Singh Khachariyawas criticised the Modi government for hike in petrol and diesel prices, the state government has also increased fuel prices. The state government increased VAT on petrol and diesel due to the financial crisis following the corona crisis.

The Finance Department has issued a notification that would be effective from midnight. The VAT on petrol has been increased by 2% percent and 1% on diesel. Subsequently, the VAT on petrol will be 38% instead of 36% and 28% in place of 27% on diesel.

As a result, the price of diesel will increase by 53 paise and reach Rs. 70. 35 while petrol prices will be Rs. 77.82, with a rise of Rs. 1.12. This is the third hike during the lockdown period. The state government had already increased by 2% VAT on Petrol and 1% on diesel on April 14.

It is to be noted that the central government had also increased excise duty on fuel products despite a huge drop in international prices of crude.

However, economic slowdown due to coronavirus has adversely impacted the revenue of the governments. Therefore, the government has been increasing tax on petroleum products rather than passing the benefit of low crude prices to the consumers.

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