Punjab government’s decision to increase VAT on petrol and diesel sparks outrage. The Punjab government has recently announced a significant increase in the Value-Added Tax (VAT) on petrol and diesel. This hike comes at a time when global crude oil prices are on a downward trajectory, raising concerns about the government’s intentions.
Diesel in Amritsar ; Top Fuel Delivery Services in Amritsar District, Punjab
Breakdown of the VAT Hike
- Petrol: The VAT on petrol has been increased by 61 paise per liter.
- Diesel: The VAT on diesel has been increased by 92 paise per liter.
Impact on Consumers
The VAT hike is expected to have a direct impact on the prices of petrol and diesel for consumers in Punjab. This will result in an additional burden on the pockets of motorists and businesses that rely on these fuels.
Government’s Justification
The Punjab government has justified the VAT hike by citing the need to increase the state’s revenue. They claim that the additional revenue generated will be used for development projects.
Public Reaction
The decision to increase VAT on petrol and diesel has faced criticism from various quarters. Consumers and opposition parties have expressed their discontent with the government’s move, arguing that it is insensitive to the financial hardships faced by the people.
Table 1: VAT Rates on Petrol and Diesel in Punjab
| Fuel | Previous VAT Rate | New VAT Rate |
|---|---|---|
| Petrol | [Previous VAT Rate] | [New VAT Rate] |
| Diesel | [Previous VAT Rate] | [New VAT Rate] |
Conclusion
The Punjab government’s decision to increase VAT on petrol and diesel has come under scrutiny. While the government aims to boost its revenue, the move is likely to add to the financial burden of consumers in the state. It remains to be seen how the public will react to this decision and whether the government will reconsider its stance.
Finance Minister Harpal Singh Cheema stated that the VAT hike on fuel would generate additional revenue of Rs 395 crore from diesel and Rs 150 crore from petrol. This information is crucial for understanding the government’s rationale behind the decision and its potential impact on the state’s finances.