PUDUCHERRY: After levying special excise duty on liquor, the government has now effected a steep hike in Value Added Tax (VAT) on petrol and diesel in the Union Territory with effect from May 29, but has kept the price lower than that in Tamil Nadu.
According to a gazette notification on May 27, the VAT for petrol in Puducherry and Karaikal region of the Union Territory has been enhanced to 28 percent, an increase of 5.85 percent, while for diesel the VAT is 21.8 percent, an increase of 3.65 percent.