By : Mohan Verma
State government has decided to hike two percent Value Added Tax (VAT) on petrol increasing it to 27 pc from existing rate of 25 pc, senior official of Excise and Taxation Department confirmed.
State Excise and Taxation Commissioner, Mr. J.C. Chauhan told media that state government has invited objections and suggestions from public to give hike in the VAT charges on the sale of petrol by two percent.
However, it did not released notification to change VAT charges so far, he informed.
The proposed hike is likely to make petrol dearer by Rs. 1.40 per liter as currently it was available on rate of Rs. 71.84 per liter in the state.
Mr. Chauhan said that government would notify the hike in petrol VAT after seeking objections and suggestions from general public after ten days.
He also informed that government also proposed to reduce the VAT on packaging and industrial raw material by 1 percent reducing it to 4 percent from existing 5 percent.
The proposed hike would adversely impact the people budget as roads are the only mean of communication and transportation in this hill state.