MP Govt Imposes 5% VAT on Liquor, Petrol and Diesel After Heavy Rains Cause Extensive Damage

Bhopal/ Indore, September 21, 2019 (Ataullah Faizan): The state government has increased VAT on petrol-diesel and alcohol by 5%. With this, petrol in Bhopal was Rs. 2.91. And diesel Rs.286 / liter Rs. Has become expensive. Petrol in Indore Rs. 3.26 And diesel has become expensive by Rs 3.14 per liter. The price of alcohol will also be 5% higher than the present. The new rates have come into effect since Friday midnight.
In July itself, the government has imposed a special duty of two rupees per liter on petrol and diesel. While imposing special duty, it was estimated that the state government would get an additional Rs 800 to 1000 crores. Now after increasing the VAT by 5 percent, this figure will be more than a quarter thousand rupees. After the approval of Chief Minister Kamal Nath, its notification was released late on Friday evening. In the first fortnight of July, the Central Government imposed the cess, while the Madhya Pradesh government also imposed a special duty of two rupees. After a month and a half, VAT has been increased and then the prices of petrol and diesel have increased. The government is expected to get around 1500 crore rupees in 6 months by increasing VAT.
Now this will be the mathematics of tax
Petrol: VAT – increased from 28% to 33%. Additional tax and special duty 3 rupees 50 paise. One percent cess.
Diesel: VAT – increased from 18% to 23%. Special duty 2 rupees. One percent cess.
Alcohol: At present there is 5% VAT which will increase to 10%.

Government’s argument: Loss from floods, increase in revenue is necessary. The government argued that there has been a lot of damage due to floods in the state. Additional revenue has to be raised to provide relief to the affected. VAT was increased because of this.

Petrol 4.16%, diesel 4.49% costlier
Diesel in Bhopal expensive by Rs 2.86
 Old rate new rate difference
Petrol Rs 78.24 Rs 81.15 2.91 Rs.
Diesel 69.65 Rs. 72.51 Rs. Rs 2.86
Diesel in Indore expensive by Rs 3.14

 Old rate new rate difference
Petrol Rs 78.40 Rs 81.66 Rs 3.26
Diesel 69.82 Rs. 72.96 Rs. Rs 3.14