(FE)
Grappling with low revenues following the outbreak of Covid-19 and the subsequent lockdown, the Uttar Pradesh government on Wednesday hiked the value added tax (VAT) on petrol and diesel and increased the excise duty on liquor to help generate an additional revenue of Rs 4,500 crore annually.
Briefing news persons after a Cabinet meeting, finance minister Suresh Khanna said the retail price of petrol has been raised by Rs 2 per litre and diesel by Re 1 per litre. “As a result, petrol will now cost Rs 73.91 a litre, while diesel prices will stand at Rs 63.86 per litre. New prices will be applicable from today midnight,” he said, adding that the government has taken care not to increase diesel prices beyond Re 1 per litre since it is commonly used in the farm, transport and industrial sectors. Based on last year’s total consumption of petrol and diesel in UP, which stood at 470 crore litre and 1,130 crore litre, respectively, the government expects to generate an additional revenue of Rs 2,070 crore annually through VAT on auto fuel.
