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Drought tax: Maharashtra govt hikes VAT on fuel, liquor, gold

<p>Petrol, diesel, liquor, cigarettes, diamonds, gold to cost more from today; the state is expecting to raise Rs 1,600 crore in the next five months from the tax, which will be used to help drought-affected regions in the state</p>

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You will pay 5 per cent more for your favourite drinks and cigarettes and also pay Rs 2 extra per litre for buying fuel for your vehicle from today, thanks to a ‘drought tax’ imposed by the state government. The state cabinet approved a decision to this effect on Wednesday. It also decided to ask the people to pay 0.2 per cent more to buy gold, diamonds and jewellery.

Experts in Mantralaya said that this was a one-of-a-kind move by the BJP-led government because tax rates were always revised in annual budgets. From today, aerated drinks too will cost 5 per cent more, said Finance and Planning Minister, Sudhir Mungantiwar.

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