Gujarat govt hikes tax and cess on petrol – diesel, price per liter up by Rs 1.90

Gandhinagar

The Government of Gujarat has in a statement today announced hike in tax/cess rate on petrol and diesel in the state. With this the petrol price will go up by Rs 1.90/litre while diesel price Rs 1.82/litre. The new prices will come to effect from January 6.

Assistant Commissioner of Sales Tax, Government of Gujarat in a statement said: Since July – 2014 petrol and diesel rates are continuously down. Entire benefit of price cut has been passed to consumers in Gujarat so far. The state government has seen adverse impact in its revenue due to continuous price cut. Gujarat govt has not increased the rates of tax on petrol and diesel for last nine years. Other states like Odisha, Madhya Pradesh, Goa, Rajasthan, Kerala, Karnataka, Telangana, Andhra Pradesh, Maharashtra, West Bengal, Punjab, Haryana and majority of other states across the country have increased the tax on petrol and diesel during last one and half year. Due to decreased revenue, development works in the state could be affected.”

“To avoid this, tax on petrol has been increased by 1% and cess by 2%. Thus it will be 24%+4% instead of existing 23%+2%. With this petrol price will be up by Rs. 1.90 and effective price per litre will be Rs 62.12 which is lower than Rajasthan, Madhya Pradesh, Kerala, Telangana, Andhra Pradesh, Punjab, Uttar Pradesh, Bihar, Maharshtra and West Bengal.”

“Similarly tax on diesel will be up by 3% and cess by 1%, and so it will be 24%+4% instead of existing 21%+3%, as a result of which diesel price will go up by Rs 1.82/litre at Rs 50.13.”

“The new rate will be effective from 6 January 2016.”

“Following is a list of states where tax on petrol is higher compared to Gujarat: Rajasthan, Madhya Pradesh, Kerala, Telangana, Andhra Pradesh, West bengal, Maharashtra, Jharkhand, Punjab, Uttar Pradesh and Uttarakhand.”

“While Uttarakhand, West Bengal, Andhra and Uttar Pradesh have increased tax twice, Punjab and Rajasthan have increased it on four occasions, Jharkhand, Maharashtra,Telangana, Kerala, Madhya Pradesh on three occasions.”

– DeshGujarat