The Uttar Pradesh government has defended its decision to increase Value Added Tax (VAT) on petrol and diesel, which has resulted in the increase in fuel prices. The government said the prices were still less than in 2018. State government spokesperson Sidharth Nath Singh said the government had deceased VAT on petrol and diesel on October 2018 when the rate of one litre of petrol was Rs 83.83 and that of diesel was Rs 75.64.
“But now even after increase of VAT, the rate of petrol is 73.63 per litre and that of diesel is Rs 65.65 per litre, which is less by Rs 10 per liter as compared to that in October 2018,” Singh claimed.
The notification for increase in VAT was issued on Monday night. “The government requires funds for development works and this increase will help in generating resources,” he said.
Singh said with this decision, the state exchequer would get additional Rs 3,000 crore. In Lucknow, the petrol now costs Rs 73.65 per litre while diesel Rs 65.34 per litre. The VAT on petrol will now be 26.80 per cent or Rs 16.74 per litre while that on diesel 17.48 per cent or Rs 9.41 per litre.
