Bhopal: The Kamal Nath government of Madhya Pradesh has increased the Value Added Tax (VAT) on petrol and diesel by five per cent, making petrol and diesel costlier by about Rs 3 per liter. The state government has also increased VAT on liquor by five percent to raise additional revenue. According to official sources, the increased rates have also come into effect from 12 pm on Friday night.
Due to increase in VAT on petrol and diesel by 5 percent, their rates have increased by two rupees 90 paise and two rupees 85 paise per litre respectively. Due to this, petrol will be sold beyond eighty rupees per litre and diesel at more than Rs 70 per litre. Official sources say that due to the recent floods in the state, there has been heavy damage to property, financial and property. It is necessary to raise additional revenue to provide relief and reconstruction to the citizens.
The state has also sought financial help from the central government. With this, VAT on alcohol has been increased by five percent. It is expected to get additional revenue of about 45 crores per month. Due to this being very low, VAT on petrol and diesel has also been increased by five percent. It is estimated that by increasing VAT on petrol, diesel and liquor, the State Treasury will get additional revenue of about two hundred crore rupees every month.
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