Punjab Govt increases VAT on Diesel & Petrol, gives nod to formulate agriculture policy

A decision to this effect was taken in a meeting of the Council of Ministers held under the chairmanship of the Chief Minister at his official residence today.

Highlighting measures undertaken by the Punjab Government in uplifting agriculture in the state, spokesperson of the Chief Minister's Office said that with the traditional agriculture in the state reaching a stage of plateau, it is imperative to formulate a robust agriculture policy to give boost to food production.

It is also necessary for saving the groundwater for the coming generations and making agriculture a profitable venture. It was decided that the new agriculture policy will be formulated by taking into confidence all the major stakeholders.

The Cabinet also gave its concurrence for introducing Education Policy in the state for giving major thrust to skill and technical based education. This will help in opening new avenues of employment for the youth of the state, thereby making them an integral part of the socio-economic growth of Punjab. This policy will focus on effectively transforming education in the state so that youth can be immensely benefited from it.

The Cabinet also gave its consent to expand the ambit of the OTS III for pending VAT (Value Added Tax) cases for benefiting the maximum number of traders. It was observed that the ongoing scheme has immensely benefited the traders and in comparison to the previous schemes, that were totally flop, the state government had earned Rs 164 crore more than the previous fiscal years through this OTS scheme.

In order to enhance the Government Revenue, the Cabinet also gave nod to enhance VAT rate on Diesel from 12.00 percent+ 10% Surcharge or rupees Rs 10.02 per litre (including Surcharge), whichever is greater to 13.09 % + 10% Surcharge or Rupees 10.94 per litre (including Surcharge) whichever is greater.

Likewise, VAT rate on Petrol has been enhanced from 15.74 %+ 10% Surcharge or Rupees 14.32 per litre (including Surcharge), whichever is greater to 16.52 % + 10% Surcharge or Rupees 14.88 per litre (including Surcharge) whichever is greater.

As a result, the VAT rate of Diesel will increase by 92 paise per litre and that of Petrol will increase by 0.61 rupee per litre. The state government also abolished the subsidy being given to power consumers having load of more than 7 KW. This will enhance the State Revenue by around Rs 2400 to Rs 3000 crore.

In a major relief to the owners of good vehicles and three wheeler (passenger) auto rickshaws in the State, the Cabinet also gave nod to do away with the process of paying the tax after every quarter that caused harassment of the owners.

The owners of these old commercial vehicles can now deposit the lump sum tax of their vehicles annually thereby saving their time, money and energy. The buyers of new such vehicles have been given the option of paying this tax for four years or eight years thereby availing a discount of 10% or 20% respectively. (ANI)