Looking to mop up an additional Rs 480 crore, the Punjab government Friday imposed a 90-paise per litre VAT on petrol and diesel. The decision was taken in a Cabinet meeting chaired by Chief Minister Bhagwant Mann and is the first tax on fuel imposed after the Aam Aadmi Party came to power in state last year.
Talking to reporters after the Cabinet meeting, Housing and Urban Development Minister Aman Arora confirmed that cess has been imposed on fuel. “Cess (VAT) has been imposed because, for a long time, its need was felt.. and I think Punjab today needs additional revenue,” he said while speaking to reporters.
