Webinar :Register now for webinar on 'Trade BankNifty in just 15 minutes a day' - By Asmita Patel

Petrol, diesel rate to go up by Rs 2 per litre each in Punjab

It raised the value added tax (VAT) on diesel from 11.80 percent to 15.15 percent and on petrol from 20.11 percent to 23.30 percent, official said.
May 6, 2020 / 07:25 AM IST

Retail prices of petrol and diesel will go up by Rs 2 per litre each in Punjab as the state government increased the tax on petrol and diesel.

It raised the value added tax (VAT) on diesel from 11.80 percent to 15.15 percent and on petrol from 20.11 percent to 23.30 percent, official said.

Coronavirus India News LIVE

The new rate will come into effect from midnight.

After the raise in VAT on fuel, the retail rate of petrol will increase from Rs 70.38 a litre to 72.43 a litre, while the rate of diesel will go up from Rs 62.02 a litre to Rs 64.06 a litre, said Ashwinder Mongia, a member of the Punjab Petroleum Dealers Association.

Also readGovernment hikes excise duty on petrol by Rs 10/litre and diesel by Rs 13/litre

Mongia slammed the state government for increasing the VAT rates, saying it would encourage smuggling of fuel and adversely hit the interest of petroleum dealers.

"The move of the state government is not going to result in much increase in revenue collection. Rather it will encourage smuggling of fuel from Chandigarh, where the tax rates are much lower," he said.

After the increase in VAT, the prices of petrol and diesel in Punjab will be costlier by Rs 6.61 a litre and Rs 4.86 a litre respectively than Chandigarh.

Presently, the price of petrol and diesel in UT Chandigarh is Rs 65.82 and Rs 59.30 a litre respectively.

The state government on Tuesday night notified the amendments in Schedule E appended to the Punjab Value Added Tax Act, 2005, a statement said.

Follow our full coverage of the coronavirus pandemic here.
PTI
first published: May 6, 2020 07:25 am
Sections