Petrol & diesel price hikes to pour Rs 700 crore into Maharashtra govt coffers

MUMBAI: Even as the common man is at the receiving end, the daily hike in petroleum prices is helping the cashstrapped Maharashtra government by adding nearly Rs 700 crore to state exchequer as value-added tax (VAT).
A senior official said every Re 1 increase in petrol and diesel prices give the state additional VAT of Rs 140 crore and Rs 275 crore, respectively, annually. “In view of consecutive hikes in petrol and diesel rates, we expect to add nearly Rs 700 crore to the state exchequer. Annually, we receive Rs 9,100 crore as VAT on petrol and Rs 16,000 crore on diesel,” he added.
Expressing concern over the deteriorating financial situation, the official said that even after imposing a 63% cut on the state budget to mobilize Rs 70,000 crore, the situation is still bad.
It was expected that the Maharashtra government would receive funds from stamp duty and registration and excise duty on liquor.