Bhopal, September 21: In view of extensive damage caused by heavy rains in Madhya Pradesh, the state government on Friday decided to impose five per cent VAT on liquor, petrol and diesel to generate additional revenue and to get the state back to normalcy.
"The state suffered an estimated loss of Rs 12,000 crore due to excessive rains this monsoon. The five per cent Value Added Tax will be a temporary measure. The increase in prices will come into effect from midnight", said the state revenue head under the lenses of CM Kamal Nath.
This is the second time in two months that the Kamal Nath government has hiked taxes on petrol and diesel. It is in the month of July that the prices of the twin petrol products had gone up by around Rs 4.5 per litre. With the latest tax hike, petrol will now be priced Rs 81.66 per litre and diesel Rs 72.96 per litre in the Central Indian state.
This move being a recovery model in the wake of heavy rains, is also a burden to the state citizens. CM Kamal Nath, when came in power had promised to reduce the prices of the fuel. Slamming the opposition, state BJP spokesperson Rajneesh Agrawal has also questioned regarding Congress' promise to lower petrol and diesel prices.