CHANDIGARH: Commuters in Punjab will now have to shell out more for petrol and diesel as the state government has decided to increase value added tax (VAT) by Rs 2 from Tuesday midnight. The hike was notified after approval by the Punjab governor.
An official spokesperson said both the amendments would come into effect from May 5 midnight. The rate of tax has been hiked from 11.8% to 15.15% for diesel and 20.11% to 23.3% for petrol.
“The increase in VAT will translate into hike in price of both petrol and diesel by around Rs 2,” said an official.
Punjab’s decision comes after the AAP government in Delhi increased VAT on diesel and petrol to make up for the financial losses suffered due to the lockdown. Punjab too has cited acute financial crisis and has been seeking financial aid from the Centre, including release of its GST arrears.
An official spokesperson said both the amendments would come into effect from May 5 midnight. The rate of tax has been hiked from 11.8% to 15.15% for diesel and 20.11% to 23.3% for petrol.
“The increase in VAT will translate into hike in price of both petrol and diesel by around Rs 2,” said an official.
Punjab’s decision comes after the AAP government in Delhi increased VAT on diesel and petrol to make up for the financial losses suffered due to the lockdown. Punjab too has cited acute financial crisis and has been seeking financial aid from the Centre, including release of its GST arrears.
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