Punjab Increases VAT on Petrol and Diesel: A Revenue Boost

The Punjab Cabinet has raised the value-added tax (VAT) on petrol and diesel by 61 paise and 92 paise per litre, respectively, during a meeting chaired by Chief Minister Bhagwant Mann. This hike will increase revenue by Rs 395 crore for diesel and Rs 150 crore for petrol.

The Punjab Cabinet on Thursday approved a significant hike in value-added tax (VAT) on both petrol and diesel, with new rates increasing by 61 paise per litre for petrol and 92 paise per litre for diesel. The decision came out of a meeting chaired by Chief Minister Bhagwant Mann.

Addressing the media post-cabinet meeting, Finance Minister Harpal Singh Cheema clarified that the move is aimed at generating additional revenue for the state. Specifically, the hike is expected to yield an extra Rs 395 crore from diesel and Rs 150 crore from petrol.

Cheema further elaborated that the revenue boost would aid in funding various state-run initiatives and projects that require financial backing.

(With inputs from agencies.)