No plan to slash taxes on petrol & diesel: MP government

petrol diesel price hike

The Madhya Pradesh government today told the state legislative assembly that there was no plan to cut taxes on petrol and diesel.

In a written reply to a question asked by Congress MLA Shailendra Patel in the assembly, the government also said there was no proposal to provide tax-free diesel to farmers.

"During the financial year 2016-17, the state government earned Rs 8,886.15 crore from different taxes levied on petrol and diesel, including the Value Added Tax (VAT)," it said.

Explainer: How Daily Revision Of Petrol, Diesel Prices Works

The reply added that the government has been levying 31 per cent VAT on petrol along with one per cent entry tax. Besides that, additional tax of Rs 4 per litre on petrol is also being collected since August 2016.

The current rate of VAT on diesel is 27 per cent besides an additional entry tax of one per cent. An additional tax of Re 1.50 per litre is also being charged since January 2016, the reply said.