Punjab raises ceiling to levy VAT on petrol to 32%

Written by Press Trust of India | Chandigarh | Updated: Aug 1 2010, 04:58am hrs
The SAD-BJP led government in Punjab has raised the ceiling of value added tax (VAT) it can levy on petrol by 2% to 32% even as the two parties are fiercely protesting against inflation in the Parliament.

The decision to raise the cap on petrol VAT was taken at a meeting of the state cabinet presided over by chief minister Parkash Singh Badal here on Thursday. The SAD-BJP government has raised the cap by two per cent, even as the two parties have been protesting in the Parliament against the Centre's move, to raise fuel prices and high inflation that has been in the double digits for the past few months.

The present rate of VAT on petrol is 27.5%, with the upper cap being at 30%, which has now been hiked by two per cent.

The Cabinet also gave approval to amend Section 8 of Punjab Value Added Tax Act, 2005 for levying VAT on Petrol from 30% to 32%.