Rajasthan government has announced an increase in Value Added Tax on petrol and diesel prices, making the fuel costlier.
It raised VAT on both the products by 4 per cent, leading to an increase of Rs 1.98 per litre in petrol and Rs 1.76 per litre in diesel.
As a result, petrol will cost Rs 66.28 per litre, while diesel will be priced at Rs 55.16 a litre in Jaipur, an official said.
“The increase will generate additional revenue of Rs 300 crore in the current fiscal. It was necessary to increase VAT to recover revenue losses,” Vaibhav Galaria, Commissioner- Commercial Tax department told PTI.
Revised VAT in the state now stands at 30 per cent for petrol and 22 per cent on diesel.
Petroleum and Diesel Association of Rajasthan has opposed the move of the government and convened a meeting of the dealers tomorrow to discuss the issue.
“VAT was already high in Rajasthan as compared to the neighbouring states. Now the government has increased it more which is not in the public interest,” Suneet Bagai, President of the Association said.
The association after discussion may agitate against the government’s decision.
Opposition Congress has also targeted the state government for its decision, saying it has betrayed the people of the state.
Congress party would hold protests against it, PCC Vice President Archana Sharma said.