Chandigarh: Because of SAD-BJP from today, the government has increased the VAT on diesel from 1.5% onwards to 11.25%, the price of diesel in Punjab has gone up by about 77% paisa.

With the increase in VAT on diesel, diesel prices have shot up from Rs 53.38 to Rs 52.61 per liter. State diesel rates vary from region to region due to transportation costs. Opposition parties and Congress have criticized the state government for increasing value added tax (VAT).

In particular, the new value-added tax (VAT) near diesel in Purban was implemented a month and a half after the hike. It is fixed at 11.25% (excluding 10% surcharge).

Earlier, the Punjab government increased VAT on diesel from 1% to 9.75% from October 1, resulting in fuel prices of 55 paisa per liter.

According to the Notification on Change in Diesel Rate issued by the Punjab State Revenue authorities, the VAT rate on diesel (excluding premium diesel) has been revised to 11.25%.

Punjab has also imposed a surcharge of 10 percent on the VAT rate. “Due to VAT hike, the price of diesel in Punjab has gone up by 77-78 per liter, said a fuel pump owner in Ludhiana, Paisa.

Petroleum dealers said they received information from the Punjab Excise Department stating that the tax department had received information at 11 am today Discussing the hike in VAT on diesel. “After receiving the information, we increased the retail price of diesel,” he said.

It is noteworthy that the Center has been losing revenue up to Rs 20-25 crore per annum on the recent diesel prices. Punjab.

Punjab levies ‘ad valorem’ tax on petroleum products, but any rise or fall in fuel prices affects the state government’s tax mobilization. Under the ‘ad valorem’ law, tax is levied on the value of goods or services.

Punjab collects about 210 billion rupees of tax from petrol and diesel every year.

Interestingly, this week the Union Territory of Chandigarh reduced the VAT on diesel to 9.68% starting from 12.5% and the diesel rate was reduced by Rs 1.40% per liter in line with Punjab.

Meanwhile, Congress leader Sunil Jahar has described the Saudi-BJP government’s measures to increase VAT as anti-agriculture and anti-industry.

“The Akali BJP government in Punjab has increased VAT on diesel, making it more expensive. Today…. These measures are anti-agriculture and anti-industry and ultimately lead to inflation…. Punjabis are now complaining that it is bad and wasteful. It is time for the Akali BJP government to explain why this is the idea of Achauddin.