Big announcement in Chhattisgarh before PM Modi’s address, petrol and diesel became expensive by Rs 2.25 per liter.

RAIPUR: The government of Chhattisgarh has removed the concession in VAT on petrol and diesel. Due to this, the price of petrol and diesel has increased by Rs 2.25 per liter. However, the state government claims that even after the withdrawal of VAT concession, vehicle fuel is still cheaper in Chhattisgarh than in the border states of Madhya Pradesh, Maharashtra and Odisha.

Senior officials of the state told today that keeping in view the revenue, the concession given on the rate of VAT on diesel and petrol has been removed. Commercial tax department of the state government has issued its notification. The new petrol and diesel rates in the state have come into effect from Thursday (August 8). Officials said that on August 7, the price of petrol was Rs 77.36 in Bhopal, Rs 78.09 in Nagpur,While in Raipur it was Rs 70.85 per liter. The increase of Rs. 2.25 is very less. On August 7, diesel in Chhattisgarh with tax was Rs 69.27 per liter and petrol was Rs 70.85 per liter. VAT on diesel is about Rs 12.85 and VAT on petrol is around Rs 13.95.

In view of the unprecedented increase in the prices of diesel and petrol, the central government in October 2018 gave relief of Rs 2 per liter, and states were also asked to give relief of Rs 2 per liter. The Chhattisgarh government had reduced VAT on diesel and petrol from 25 percent to 21 percent. The duration of its concession was till 31 March 2019. This was extended to 31 March 2020.

He informed that in the budget presented by the central government in July 2019, excise duty and cess on diesel and petrol has been increased by two rupees per liter. With this increase, the excise duty and cess charged by diesel at present by the central government is Rs 15.83 per liter and Rs 19.98 per liter on petrol.

Based on the current price of diesel and petrol in the state of Chhattisgarh and the current VAT rates, the tax load per liter on diesel is about Rs. 12.85 and on petrol is about Rs. 13.95. Officials said that this decision has been taken in view of the revenue interest of the state government. This has led to VAT rate of 25 per cent +1 per liter on diesel and 25 per cent + 2 per liter on petrol as per the schedule of VAT Act.