The recent hikes in prices of petrol and diesel have resulted in an additional value added tax (VAT) income of Rs 471.15 crore for the state government.

Replying to a question of Danilimda MLA Shailesh Parmar, the state government replied that in 2011, VAT collection from diesel and petrol sales was Rs 5,394.42 crore and this increased to Rs 5,865.62 crore in 2012

Finance minister Nitin Patel, in a written reply, told the house that in 2011, the income from the VAT on petrol was Rs 1,734.34 crore and this increased to Rs 1,913.44 crore. Similarly, in 2011, the VAT collection on diesel sales was Rs 3,660.13 crore and this increased to Rs 3,952.18 crore.

The total VAT collection of the state was Rs 30,173.44 crore in 2011, which increased to Rs 40,324.44 crore in 2012.

The minister, after presenting the budget on Wednesday, had ruled out any decrease in the VAT on petrol and diesel. He said, "It is like the state government increasing its taxes and then asking corporations to decrease their tax revenues. This is not justified." However, some officials said that the entire increase cannot be attributed to the increasing price of petrol and diesel. The increase in number of vehicles has also resulted in the increase in the income.

More vehicles registered in last decade than previous 40 years

State transport minister Nitin Patel, in reply to a question asked by Dhandhuka MLA Lalji Patel, informed that the income of Ahmedabd RTO has increased by Rs 23 crore as compared to 2011. He said that the income of the region transport office was about Rs 379.62 crore in 2012. In the 40-year period of 1961 to 2001, 12.19 lakh vehicles were registered, while in the last 11 years, about 13.80 lakh vehicles were registered in Ahmedabad.