Team Herald
PANJIM: Diesel prices in Goa have shot up by Rs 2.60 per litre with the State government increasing Value Added Tax (VAT) on car oil to 22 percent.
In a notification issued on Friday, the government increased VAT on high speed diesel oil by 4 per cent, taking it to 22 per cent. Diesel will now cost Rs 64.66 per litre. The notification was issued by Finance Under Secretary Pranab Bhat.
Earlier this week, the Central government had raised excise duties by Rs 10 per litre on petrol and Rs 13 per litre on diesel. The same came into effect from May 6.
Sources in the State government said the decision to increase VAT on diesel has been taken to raise some revenue in view of a tight fiscal situation in the wake of the COVID-19 pandemic.
Currently, petrol prices in the State vary between 68.56 and Rs 70 per litre.
