Assam raises VAT on petrol, diesel by Rs 5 each to protect revenue from falling price of crude oil in international market

Prabin Kalita | TNN | Apr 22, 2020, 17:29 IST

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GUWAHATI: Assam has increased VAT on petrol and diesel by Rs 5 per litre each. State finance minister Himanta Biswa Sarma said that the step has been taken to protect the state’s revenue earnings in view of the slump in price on crude oil in international market.
A liter of petrol in Assam now costs Rs 76.61 after VAT was increased from Rs 17.63 to Rs 22.63 on the existing net price of Rs 53.98 a litre. Similarly a liter of diesel Rs 70.07 with VAT raised from Rs 12.45 to Rs 17.45 on the exiting net price of Rs 52.62 a litre.
“I would term this as mopping up additional revenue but a measure to protect our revenue from the slump in price of crude oil in international market,” Sarma said. He added that the new VAT is expected to give the state a revenue of Rs 50 crore.
Assam being an oil producing state will suffer a bigger impact from the slump in crude oil in the international market in terms of its earnings from royalty.
“Our last monthly receipt is Rs 166 crore on an average. We except that this would come down by at least half with the fall in international market price of crude oil,” Sarma said.