Administration Friday increased the Value Added Tax (VAT) on petrol from 20 per cent to 24.74 per cent. With this, petrol will cost an additional Rs 2.21 per litre. The administration also issued a notification for hike in VAT on motor vehicles, coal, wheat, rice and paddy.

The current price of petrol is Rs 59.59 per litre. From midnight, the price will increase to around Rs 61.08 per litre. Despite hike of 4.74 per cent, Chandigarh will continue to have lowest VAT on petrol in the region while Punjab and Haryana charge 32 per cent and 26.25 per cent.

UT excise and taxation commissioner Jatinder Yadav said the VAT rates were hiked to “bring parity” with rates in Punjab.

Slamming the administration, Amanpreet Singh, general secretary, Chandigarh Petroleum Dealers Association, said the hike in VAT on petrol would put additional financial burden on the common man. “Why is the administration burdening its residents by increasing rate of taxes to please Punjab, which is struggling with its finances?,” asked Singh.

VAT on motor vehicle has been increased from 12.5 per cent to 13.2 per cent, bringing it at par with Punjab. The administration has enhanced VAT on rice, paddy, coal and wheat from 4 per cent to 5 per cent, bringing the rates at par with Punjab.

The administration on December 8, Administration had increased luxury tax from 4 per cent to 8 per cent. Earlier this year, VAT on diesel was hiked from 9.68 per cent to 16.41 per cent.
Federation of Sector Welfare Associations Chandigarh (FOSWAC) chairman Baljinder Singh Bittu also criticised the administration for increasing rates of VAT on different items. “All the political parties, traders associations and RWAs should protest against the hike in rate of VAT,” said Bittu.