Petrol and diesel prices will go up after Punjab government hiked VAT in the state
Punjab government on Sunday announced a hike in VAT on petrol and diesel price in the state.
Punjab government has increased VAT on petrol and diesel price in the state. With this move, announced on June 11, the cost of one litre of petrol in the state will now be Rs 98.65 while diesel prices will be Rs 88.95 per litre.
Earlier, in February, 2023, the Punjab government imposed a 90 paise per litre VAT on petrol and diesel. This was done in order to raise additional revenue for the state.
VAT or Value Added Tax is a consumption tax that is levied on goods and services at each stage of their production and distribution, up to and including the point of sale. The VAT is ultimately borne by the consumer, but it is collected from businesses at each stage of the supply chain.
Also Read: Petrol, Diesel June 11 Price List: Check New Rates In Delhi, Mumbai And Other Cities
Punjab government increases VAT on petrol and diesel prices. Petrol price in the state to be Rs 98.65 per litre and diesel price to be Rs 88.95 per litre— ANI (@ANI) June 11, 2023
The VAT is collected by the state governments. Businesses that are required to register for VAT must file monthly returns with the state government. The state government then uses the information from these returns to collect the VAT from businesses.