VAT on petrol, diesel in Uttar Pradesh one of the lowest in India
The rates of the Value Added Tax (VAT) on petrol and diesel in Uttar Pradesh are one of the lowest in the country, but the revenue that the state earns annually from petroleum products is the highest after Maharashtra, the data available on the website of ministry of petroleum and natural gas indicates.
Unlike most other states, Uttar Pradesh also does not levy any additional tax or cess on diesel and petrol. The state charges at a flat rate. According to the UP government’s notification issued on November 2021 as well as the ministry’s data, the rate of tax on petrol in the state is 19.36% or ₹14.85 per litre, whichever is greater. In case of diesel, the tax rate has been fixed at 17.08% or ₹10.41 per litre, whichever is more.
Despite not having increased the fuel tax in its five-year tenure, the Yogi Adityanath government lowered the VAT on petrol and diesel in November last year, making them cheaper by ₹12 per litre in the state.
