Published On : Fri, Sep 16th, 2016

Maharashtra hikes VAT on petrol by Rs 1.50 per litre

 

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Nagpur/Mumbai: The Maharashtra government on Friday hiked the value added tax (VAT) on petrol by ₹1.50 per litre.

This is expected to generate an additional revenue of Rs 600 crore, a senior official said.

The state has not touched diesel prices, fearing losing revenue to neighbouring states, he added.

“The decision is taken to garner additional revenue. Instead of going in for ad-valorem where VAT is revised in percentage, the State government preferred to increase VAT in rupees,” Deputy Secretary (Finance) Rajendra Bhagat told media.

Uday Lodh, President of the Federation of All-Maharashtra Petrol Dealers’ Association, said, “The decision would affect the business of some of the retailers in border areas of Maharashtra.The price rise would hit individual consumers more”, he said.