Punjab govt raises VAT on diesel, cold drinks, cigarette
PrintListen to this Article
People will have to pay more for diesel, aerated drinks and cigarette in Punjab with SAD-BJP led state government raising value added tax (VAT) on these products.
In a notification issued on October 1, Punjab excise and taxation department has increased VAT rate on diesel (other than premium diesel), cold drinks (including aerated drinks, soda) and cigarette and cigar by 1 per cent, 5 per cent and 9.5 per cent respectively.
With this hike, the tax on diesel has increased to 9.75 per cent while VAT on cold drinks and cigarette have jumped to 27.5 per cent and 30 per cent.
Punjab also levies 10 per cent surcharge on VAT rates.
After levying surcharge, the effective tax rates on diesel, beverages, cigarette will be 10.72 per cent, 30.25 per cent and 33 per cent respectively, said an official of Punjab excise and taxation department.
After the hike in VAT on diesel, the retail price of diesel has jumped by 55 paise a litre to Rs. 58.11 per litre.
Punjab annually collects about Rs. 2,600 crore of tax from petroleum products.
Meanwhile, opposition party Punjab Congress today described hike in tax on diesel as "black Diwali gift" for people and demanded its immediate roll back.
In a statement here, Punjab Congress president Partap Singh Bajwa said by effecting the hike in VAT, Chief Minister Parkash Singh Badal, had given "Black Diwali gift" to the people in general, industry and the farmers in particular.
Pointing out that VAT on diesel in Punjab was the highest amongst several states including neighbouring Haryana, Bajwa said Punjab Chief Minister had claimed himself to be the biggest champion of the farmers as it was this section which would suffer the most from this decision in view of the fact that the farm sector in Punjab was known to be the main consumer of diesel.
Taking a dig, PPCC chief said it was Badal who had been attacking the UPA for every hike in the prices of diesel and petroleum on the logic that such decisions were anti-people and add to all round inflation.
"Badal owes an explanation to the people as to why VAT has been increased by one per cent in the state in which it is already being charged at the rate of 8.75 per cent. You can't have double standards on every issue", he added. (PTI - HT)
Category : VAT | Comments : 0 | Hits : 456
A division bench of Justices AS Dave and Biren Vaishnav of Gujarat High Court has ruled that misconduct proceedings cannot be initiated against advocates, chartered accountants, and cost accountants under the Gujarat VAT Act. The bench also ruled that the respective professional bodies — Bar Council, ICAI, and ICWAI— are the authorities empowered to prosecute these professionals for any misconduct. The decision came in response to a petition filed by Pravin Modh against the miscon...
As a measure to tackle the increasing rate of obesity, Kerala is all set to introduce the first ever 'fat tax' to be levied on junk and fast food items. In his budget speech, Kerala's Minister of Finance proposed a tax of 14.5% to be levied on junk food including items like burgers, pizzas, sandwiches, doughnuts, tacos, etcetera. While eating out at fast food restaurants like McDonald's, Pizza Hut, Domino's and others will become more expensive in Kerala, the recently elected...
Delhi government today said VAT collection in the ongoing financial year has crossed Rs 20,000 crore, close to its revised target of Rs 21,000 crore. The government in its first Budget had set Rs 24,000 crore as the target but later, on the grounds of unsteady collection, it was toned down to Rs 21,000 crore. VAT Commissioner SS Yadav said total tax collection in the current financial year crossed Rs 20,000 crore mark on March 25 and that the amount was Rs 2,000 crore higher than last fina...
In a first for the city, Delhi government's Value Added Tax department has decided to bring all big and small players on e-commerce platforms under the scanner to check evasion of tax. A notification is under way to make it mandatory for all online portals like Flipkart and Snapdeal to file tax returns quarterly. All dealers operating through these platforms will also be expected to file their returns. Failure to do so will evoke action. The department has prepared a detailed set of gu...
The Delhi government provided a big relief to the city traders by allowing them to carry forward input tax credit to next financial year and extending the last date of submission of R-9 forms for last three years, up to June 30. The government's move comes with an aim to simplify business for the traders in the national capital, an official release said . As per the existing provisions, a trader can carry forward the excess tax credit during the same year only. The traders perceiv...
Comments