Petrol and diesel prices go up in Punjab as govt hikes VAT
Chandigarh, September 5: The Punjab government has announced a hike in fuel prices, increasing the Value Added Tax (VAT) on both petrol and diesel. As a result, petrol prices will rise by 61 paise per litre, while diesel will see a 92 paise per litre increase.
This move comes as part of the government’s effort to generate additional revenue, though it is expected to impact the daily expenses of consumers, especially in sectors heavily dependent on transportation. The hike may also lead to an increase in the cost of essential goods and services.
Meanwhile, Punjab Chief Minister Mann has announced the withdrawal of the previous Congress government’s scheme that provided subsidised electricity to households with up to 7 KW load. Finance Minister Harpal Cheema stated that this move is expected to generate between Rs 1,500 and Rs 17,00 crore for the state.
This scheme was introduced during Charanjit Channi’s tenure as Punjab Chief Minister. Finance Minister Harpal Cheema said while the AAP government would continue to provide 300 units of free power per month, the dual subsidy issue needed resolution. This move was expected to save the state Rs 392 crore annually.
Additionally, the government has implemented increases in the collector rate for property registration and motor vehicle taxes for two-wheelers and four-wheelers to boost state revenue. These actions are part of a broader strategy to stabilise the state's finances, especially after facing difficulties in meeting its August liabilities, leading to delays in salary and pension disbursements.
Cheema said the state expected to generate between Rs 1,500 crore and Rs 1,700 crore annually from these measures.
- PTC NEWS
