Goa govt increases VAT on petrol, ATF in Budget

The Goa government in its Budget today proposed increase in thevalue added tax (VAT) on petrol from the existing 15 per cent to 22 per cent.
Chief Minister Laxmikant Parsekar, who also holds the finance portfolio, today presented a Rs 14,694.17 crore budget for 2016-17 with plan outlay of Rs 4,008.05 crore in the Assembly.
The hike in VAT would be reviewed if the petrol prices cross the April 2, 2012 level.
"My government had reduced VAT on petrol in 2012 to provide succour to the general public," he said.
"Since the last budgetary announcement, the prices on motor spirit (petrol) have been revised downward on seven occasions. In order to cater to the enhanced spending on infrastructure projects, as well as social welfare schemes, I propose to increase the VAT on motor spirit from 15 per cent to 22 per cent," he said.

The Chief Minister said even with this increase, the price of a litre of petrol would be around Rs 55, much less than that on April 2, 2012.

"If required, this rate would be appropriately revised so as not to exceed the prices on April 2, 2012," he said.
Parsekar also announced hike in the VAT on Aviation Turbine Fuel (ATF).
"To promote the aviation sector which was reeling under heavy price of ATF, my government had reduced VAT from 22 per cent to 12.5 per cent. Prices of ATF which were in the range of Rs 60,000 per kilo litre have since come down to around Rs 31,000 per KL," he said.

"This incentive is no longer relevant and required....As a measure of additional resource mobilisation to meet enhanced budgetary allocation for tourism-related infrastructure, I propose to enhance VAT on ATF midway at 18 per cent," he said.
The Chief Minister also proposed to hike VAT as well as tax on entry of goods in respect of regasified liquefied natural gas used by the industry from the existing 20 per cent to 30 per cent.