Petrol, Diesel Prices in Puducherry to be Costly From May 29 | Know Here Why

New Delhi: The government of Puducherry on Thursday revised the Value Added Tax (VAT) on petrol and diesel. As per updates, the new price will come into effect from May 29. Also Read – Saudi Arabia to Increase VAT From 5 to 15 Per Cent to Support Its Coronavirus-hit Economy

The rate of the tax is valid only for three months from the date of effect of the notification. Also Read – COVID-19 Disruption May Push Centre to Further Hike Duty on Petrol, Diesel

As per the revised VAT, the petrol will be sold at a tax rate of 28% in Puducherry and Karaikal, 23% in Mahe and 25% in Yanam area. Also Read – ‘Economically Anti-national’: Congress Slams Centre For Increasing Fuel Price During Lockdown

Similarly, the diesel will be sold at a tax rate of 21% in Puducherry and Karaikal area, 18% in Mahe and 20% in Yanam area.

The Puducherry government had in April this year also revised the Value Added Tax on petrol and diesel by one per cent to mobilise additional revenue resources.

As per the order, the petrol was sold at a tax rate of 22.15 per cent and diesel at 18.15 per cent.

The notification had stated that the additional revenue collected will be transferred or allocated to the Department of Health and Family Welfare Services for incurring expenditure on coronavirus pandemic.