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6.2% increase in VAT collected on fuels

Ahmedabad: The state government has collected Rs 20,216.5 crore in value added tax (VAT) on petrol, diesel, CNG and PNG between February 1, 2022, and January 31, 2023. This represents a 6.2% increase from 2021-22.
This information was given in replies to questions from Dariapur Congress MLA Imran Khedawala and Anklav MLA Amit Chavda. The government stated that compared to 2021-22, VAT collection declined on petrol and PNG, but increased for diesel and CNG compared to 2021-22.
State finance minister Kanu Desai said that tax collected on diesel rose to Rs 13,951.23 crore in 2022-23 from Rs 12,731.8 crore in 2021-22, a 9.58% increase.
Officials said the increase in VAT collected on diesel and CNG indicates that transport businesses, had suffered a setback in 2021-22 but returned to normal in 2022-23.
He said that in November 2021, the state had reduced VAT on diesel and petrol by Rs 7 per litre. Desai said the decline in VAT receipts from petrol needs to be looked into. It may be that more people have switched to public transport or more people are working from their homes.
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