Diesel became costlier in Himachal Pradesh, Congress government increased VAT

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    Shimla, 15 July (Hindustan Times). Diesel prices have increased in Himachal Pradesh. The Congress-led Sukhwinder Singh Sukhu government in the state has increased the Value Added Tax (VAT) on diesel by Rs 3 per litre.

    The state government has issued a notification regarding revision of VAT on diesel. After this the VAT hike has come into effect from midnight. As per the notification, the government has increased VAT on diesel from 9.96 per cent to 13.9 per litre. After this increase, VAT on diesel, which was Rs 7.40 per liter earlier, has now become Rs 10.40 per litre. Due to this, the price of diesel per liter in the state has increased from the existing Rs 86 to Rs 89 per litre.

    The Sukhu government has increased VAT on diesel for the second time within six months. Earlier this year, on January 7, VAT on diesel was increased by three percent. When the Sukhu government assumed power in December 2022, VAT on diesel was Rs 4.40 per litre, which has now increased to Rs 10.40 per litre.

    After assuming office, Sukhu had said that the state’s financial condition was not sound and his government would be forced to take tough measures for economic reforms. At present, the debt burden on Himachal Pradesh has reached Rs 75 thousand crore.

    On the other hand, the situation is very bad due to floods and landslides in Mandi and Kullu districts of the state. Many people have lost their lives in the disaster. According to preliminary estimates of the state government, property worth Rs 8,000 crore has been damaged in Himachal due to monsoon rains.

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