The Madhya Pradesh government has increased the Re 1 for gasoline and diesel. (Representative)
Bhopal:
Given the effect of the foreclosure on the economy, the Madhya Pradesh government on Friday increased Re 1 from the current additional cessation imposed on gasoline and diesel.
The new prices went into effect today, said an order from the state trade tax department.
Previously, the additional tax levied on petrol and diesel was respectively Rs 3.50 and Rs 2. After the increase, the additional cessation on petrol and diesel rose to Rs 4.50 and Rs 3 respectively.
The state government provides additional income of Rs 200 crore from gasoline and Rs 370 crore from diesel each year.
Madhya Pradesh has one of the highest fuel value added taxes in the country.
Last year, the Congressional government raised VAT on diesel, gasoline and alcoholic beverages by 5% to raise additional revenue to cover losses from the floods.
The latest increase brings the total collection of VAT on petrol and diesel to 23% and 33% respectively.
To date, 10,443 cases of coronavirus have been reported by the state. However, 7,201 patients have been cured so far and active cases amount to 2,802.
To date, at least 440 people have died from the disease.
