Punjab Cabinet approves a VAT hike on petrol by 61 paise, diesel by 92 paise per litre
North News
Chandigarh, September 5
In a major decision, Punjab’s Cabinet on Thursday approved an increase in petrol and diesel prices by 61 paise and 92 paise per liter, respectively. The Cabinet also announced the cancellation of a power subsidy scheme introduced by the previous Congress government, which provided discounted electricity rates to households with up to a 7 KW load. These measures are expected to generate an additional revenue of ₹2,400 to ₹3,000 crore for the state.
In an official statement, the Punjab government said that the state cabinet has approved an increase in the VAT rates on diesel and petrol as part of efforts to boost government revenue.
AMBIT OF OTS III TO BE EXPANDED FOR BEFITTING MAXIMUM NUMBER OF TRADERS
The Cabinet also gave its consent to expand the ambit of the OTS III for pending VAT cases for befitting the maximum number of traders. It was observed that the ongoing scheme has immensely benefited the traders and in comparison to the previous schemes, that were totally flop, the state government had earned Rs 164 crore more than the previous fiscal years through this OTS scheme. The formal orders for the expansion of this scheme will be issued shortly.
MAJOR RELIEF TO THE OWNERS OF GOOD VEHICLES AND THREE WHEELER (PASSENGER) AUTO RICKSHAWS
In a major relief to the owners of good vehicles and three-wheeler (passenger) auto rickshaws in the State, the Cabinet also gave nod to do away with the process of paying the tax after every quarter that caused harassment of the owners. The owners of these old commercial vehicles can now deposit the lump sum tax of their vehicles annually thereby saving their time, money and energy. The buyers of new such vehicles have been given the option of paying this tax for four years or eight years thereby availing a discount of 10% or 20% respectively.
