The state government has been charging 23% Value added tax (VAT) on petrol, 21% on diesel and 15% on compressed natural gas.

Gujarat Pradesh Congress Committee president Arjun Modhwadia said that the VAT on petrol and diesel charged in Gujarat was the highest in the country. Other states have VAT less than 20 per cent. "Despite the high tax rates, the government has levied additional two per cent tax in lieu of the abolition of the Octroi in the state," he added.

The government collects a cess of 2% on petrol and 3% on diesel. The state government in a written reply to Congress MLA from Vagara and chief whip Iqbal Patel on Monday claimed the total VAT on CNG was 15 per cent including cess. Several questions on VAT on CNG were asked by the Congress MLA in the state assembly on Monday.

In reply to another question of Congress MLA Bhavku Unghad, the House was told that since January 1, 2009, to December 31, 2011, the state earned revenue of Rs 8,251.45 crore as VAT on petrol and diesel while the cess collection amounted to Rs 1,695.16 crore.

The Congress has been accusing the state of charging maximum VAT on fuel. In the past, the Congress leader had also demanded that the state government should reduce the VAT.