Yogi govt hikes VAT on petrol by Rs 2, diesel by Re 1 per litre each
Lucknow, May 6(UNI) A cash-strapped Uttar Pradesh government on Wednesday announced hike in Value Added Tax( VAT )on petrol and diesel to get additional revunue to meet the challenges.
While the hike in petrol would be Rs 2 per litre and for diesel would be Re 1 per litre , which will come into effect from midnight tonight.
State Finance Minister Suresh Kumar Khanna,while announcing the decision after the Cabinet meeting here, said now petrol in the state will cost Rs 73.91 per litre and diesel Rs 63.86 per litre.
The government is expected to get an additional revenue of Rs 2070 crores by this hike.
Khanna said that other states, including Delhi, had gone for hefty hike of Rs 7 per litre but UP government only made nominal hike and in diesel it was just Re 1 as it was used by the farmers in big numbers.
Now the tax ratio of VAT of the stare government on petrol has gone up to Rs 18.74 per litre from Rs 16.74 per litre and similarly in diesel the tax share of the UP government would be Rs 10.41 per litre which was earlier Rs 9.41 per litre.
Khanna said that the state consumes around 470 crore litre petrol and 1130 cr litre diesel in a year .
Justifying the hike, the Finance Minister said that the government was facing acute finance shortage to meet the obligations and in the first month of April in the new financial year against the target revenue collection of Rs 12,141 crores, the collection was just Rs 1178 crores.
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