Punjab Cabinet has decided to increase the value-added tax (VAT) on petrol and diesel by 61 paise a litre and 92 paise per litre, respectively, said Finance Minister Harpal Singh Cheema on Thursday. The decision has been taken followed by a meeting chaired by Punjab Chief Minister Bhagwant Mann with the council of ministers here.
Fuel pump owners strongly condemned the decision of the AAP-led government, saying it would hit their business hard, saying that this is the third time petrol-diesel rates have been increased by the Aam Aadmi Party government in the past two and a half years.
Currently, the retail price of petrol in Mohali stands at Rs 97.01 per litre, and diesel is priced at Rs 87.21, meanwhile in the Union Territory of Chandigarh, prices of petrol and diesel are Rs 94.24 and Rs 82.40 per litre, respectively.
Cheema said the hike in VAT on fuel will lead to an increase in revenue by Rs 395 crore from diesel and Rs 150 crore from petrol.
Reacting to the hike in VAT on fuel, Petrol Pump Dealers' Association, Punjab, spokesperson Monty Sehgal criticised the state government's decision.
He said with the hike in VAT on fuel, the sales of petrol and diesel located in border districts will be impacted as their business will shift to neighbouring states where the fuel is less expensive.
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