HP hikes VAT on diesel by 1 percent, prices likely go up by 55 paise/litre

Shimla/October 28 (NG News)
Himachal government on Tuesday increased the VAT n diesel by one percent due to which diesel prices are likely to go up by Rs 0.55 paise per litre.

A state government spokesperson said that consensus was reached upon to increase the VAT on diesel by one per cent in the Cabinet meeting held here today.

“But the VAT is lower by 0.12 per cent as compared to VAT rate applicable in Punjab and it would also add to revenue earnings to the tune of Rs 26 crore annually,” said the spokesperson.

The Cabinet also gave its nod to amend the existing schedule (Input tax restricted goods) appended to Himachal Pradesh Value Added Tax Rules, 2005 by inserting a new clause to prevent loss of VAT due to huge difference in rate of tax on the commodities in comparison to other states.

The Cabinet agreed upon to upgrade Primary Health Centre Kupvi in Chopal to 30 bedded Community Health Centre along-with the requisite staff.

It was also decided to lease out Water Sports Complex Taleru in Chamba district along-with the equipments to some private agency. It was decided to give concession in Value Added Tax in Backward Panchayats and Tribal Areas in the state.