The Himachal Pradesh government has hiked value-added tax (VAT) on diesel by one per cent. This decision was taken on Tuesday after VAT on petrol went up by two per cent in the state. It is expected to bring in a revenue of Rs 26 crore a year to the state exchequer. The Cabinet also gave its nod to amend the existing schedule (input tax restricted goods) appended to the VAT rules.
It has proposed to insert a new clause to prevent loss of VAT due to difference in rate of tax on the commodities in comparison to other states, a spokesman said.
