Goa Government Hikes Value Added Tax On Petrol By 7 Per Cent

Goa Government Hikes Value Added Tax On Petrol By 7 Per Cent

Four years after virtually abolishing Value Added Tax (VAT) on petrol as part of a poll promise, the Goa government today announced a seven per cent hike in VAT on the popular fuel.

The step pushed taxation levels on petrol to pre-2012 level.

With Chief Minister Laxmikant Parsekar announcing in his budget speech that VAT on petrol will be 22 per cent as compared to 20 per cent in 2012, the Congress said the VAT hike was a classic case of the ruling Bharatiya Janata Party making a U-turn on its poll promise of abolishing the tax on the popular fuel.

“In order to cater to the enhanced spending on infrastructure projects, as well as, social welfare schemes; I propose to increase the VAT on motor spirit from 15 per cent to 22 per cent,” Mr Parsekar said.

He said even with the seven per cent increase in VAT, petrol would not cost as much as it did in 2012, before then chief minister Manohar Parrikar virtually had abolished VAT on petrol bringing prices down by Rs. 11. It had made petrol price in Goa the cheapest in the country. Read More…

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