Patna: The Bihar government today withdrew two per cent tax concession on diesel in the state to perk up its coffers, making the fuel dearer by over Rs 3 per litre in the state.
The state-imposed tax on diesel would now climb to 18 per cent and the fuel would cost Rs 58.14 per litre instead of Rs 55.12 per litre.
Principal Secretary, Cabinet Department, B Pradhan said a decision in this regard was taken at a cabinet meeting chaired by Chief Minister Jitan Ram Manjhi and the concession has been withdrawn with immediate effect.
“The two per cent concession on diesel which has been withdrawn, was declared by the state government on September 21, 2012. Diesel contributes to 17 per cent of revenue collected by the Commercial Taxes department and the move has been made to offset the loss to the state exchequer due to its continuously declining prices,” Pradhan said.
The withdrawal of concession would add an additional Rs 26 crore per month to the state Commercial Taxes department. The rate of state imposed tax in neighbouring Jharkhand was 18 per cent, 17 per cent in West Bengal and 17.48 per cent in Uttar Pradesh.
