Petrol, diesel, alcohol expensive in Madhya Pradesh

Bhopal, Ta. September 21, 2019, Saturday

In view of the widespread damage caused by heavy rains in Madhya Pradesh, the state government has decided to raise VAT on petrol, diesel and alcohol by 5 percent to collect additional revenue and the decision came into effect from Friday night.

A senior Madhya Pradesh official said the state government has increased VAT on petrol, diesel and alcohol by five per cent to deal with the widespread damage caused by heavy rains during the monsoon.

Due to heavy rains this year, the state has lost about Rs 12,000 crore. To cope with this loss, the three-item VAT has been temporarily increased by five percent.

The decision was taken on Friday evening (September 20th) and was implemented from midnight. The official said the VAT has been temporarily increased so it is likely to be withdrawn after rain damage has been reimbursed.

Due to this decision, the VAT rate on petrol in Madhya Pradesh has been increased from 28 percent to 33 percent, the rate of VAT on diesel has been increased from 23 percent instead of 18 percent and the rate of VAT on liquor has been increased from five to 10 percent.